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India’s most popular services are becoming super apps

Posted by on May 11, 2019 in Apps, Asia, China, Cloud, Developer, Facebook, Finance, Flipkart, Food, Foodpanda, Gaana, Gaming, grab, haptik, hike, India, MakeMyTrip, Media, Microsoft, microsoft garage, Mobile, Mukesh Ambani, mx player, payments, Paytm, paytm mall, reliance jio, saavn, SnapDeal, Social, Startups, Tapzo, Tencent, Times Internet, Transportation, Truecaller, Uber, Vijay Shekhar Sharma, WeChat | 0 comments

Truecaller, an app that helps users screen strangers and robocallers, will soon allow users in India, its largest market, to borrow up to a few hundred dollars.

The crediting option will be the fourth feature the nine-year-old app adds to its service in the last two years. So far it has added to the service the ability to text, record phone calls and mobile payment features, some of which are only available to users in India. Of the 140 million daily active users of Truecaller, 100 million live in India.

The story of the ever-growing ambition of Truecaller illustrates an interesting phase in India’s internet market that is seeing a number of companies mold their single-functioning app into multi-functioning so-called super apps.

Inspired by China

This may sound familiar. Truecaller and others are trying to replicate Tencent’s playbook. The Chinese tech giant’s WeChat, an app that began life as a messaging service, has become a one-stop solution for a range of features — gaming, payments, social commerce and publishing platform — in recent years.

WeChat has become such a dominant player in the Chinese internet ecosystem that it is effectively serving as an operating system and getting away with it. The service maintains its own app store that hosts mini apps and lets users tip authors. This has put it at odds with Apple, though the iPhone-maker has little choice but to make peace with it.

For all its dominance in China, WeChat has struggled to gain traction in India and elsewhere. But its model today is prominently on display in other markets. Grab and Go-Jek in Southeast Asian markets are best known for their ride-hailing services, but have begun to offer a range of other features, including food delivery, entertainment, digital payments, financial services and healthcare.

The proliferation of low-cost smartphones and mobile data in India, thanks in part to Google and Facebook, has helped tens of millions of Indians come online in recent years, with mobile the dominant platform. The number of internet users has already exceeded 500 million in India, up from some 350 million in mid-2015. According to some estimates, India may have north of 625 million users by year-end.

This has fueled the global image of India, which is both the fastest growing internet and smartphone market. Naturally, local apps in India, and those from international firms that operate here, are beginning to replicate WeChat’s model.

Founder and chief executive officer (CEO) of Paytm Vijay Shekhar Sharma speaks during the launch of Paytm payments Bank at a function in New Delhi on November 28, 2017 (AFP PHOTO / SAJJAD HUSSAIN)

Leading that pack is Paytm, the popular homegrown mobile wallet service that’s valued at $18 billion and has been heavily backed by Alibaba, the e-commerce giant that rivals Tencent and crucially missed the mobile messaging wave in China.

Commanding attention

In recent years, the Paytm app has taken a leaf from China with additions that include the ability to text merchants; book movie, flight and train tickets; and buy shoes, books and just about anything from its e-commerce arm Paytm Mall . It also has added a number of mini games to the app. The company said earlier this month that more than 30 million users are engaging with its games.

Why bother with diversifying your app’s offering? Well, for Vijay Shekhar Sharma, founder and CEO of Paytm, the question is why shouldn’t you? If your app serves a certain number of transactions (or engagements) in a day, you have a good shot at disrupting many businesses that generate fewer transactions, he told TechCrunch in an interview.

At the end of the day, companies want to garner as much attention of a user as they can, said Jayanth Kolla, founder and partner of research and advisory firm Convergence Catalyst.

“This is similar to how cable networks such as Fox and Star have built various channels with a wide range of programming to create enough hooks for users to stick around,” Kolla said.

“The agenda for these apps is to hold people’s attention and monopolize a user’s activities on their mobile devices,” he added, explaining that higher engagement in an app translates to higher revenue from advertising.

Paytm’s Sharma agrees. “Payment is the moat. You can offer a range of things including content, entertainment, lifestyle, commerce and financial services around it,” he told TechCrunch. “Now that’s a business model… payment itself can’t make you money.”

Big companies follow suit

Other businesses have taken note. Flipkart -owned payment app PhonePe, which claims to have 150 million active users, today hosts a number of mini apps. Some of those include services for ride-hailing service Ola, hotel booking service Oyo and travel booking service MakeMyTrip.

Paytm (the first two images from left) and PhonePe offer a range of services that are integrated into their payments apps

What works for PhonePe is that its core business — payments — has amassed enough users, Himanshu Gupta, former associate director of marketing and growth for WeChat in India, told TechCrunch. He added that unlike e-commerce giant Snapdeal, which attempted to offer similar offerings back in the day, PhonePe has tighter integration with other services, and is built using modern architecture that gives users almost native app experiences inside mini apps.

When you talk about strategy for Flipkart, the homegrown e-commerce giant acquired by Walmart last year for a cool $16 billion, chances are arch rival Amazon is also hatching similar plans, and that’s indeed the case for super apps.

In India, Amazon offers its customers a range of payment features such as the ability to pay phone bills and cable subscription through its Amazon Pay service. The company last year acquired Indian startup Tapzo, an app that offers integration with popular services such as Uber, Ola, Swiggy and Zomato, to boost Pay’s business in the nation.

Another U.S. giant, Microsoft, is also aboard the super train. The Redmond-based company has added a slew of new features to SMS Organizer, an app born out of its Microsoft Garage initiative in India. What began as a texting app that can screen spam messages and help users keep track of important SMSs recently partnered with education board CBSE in India to deliver exam results of 10th and 12th grade students.

This year, the SMS Organizer app added an option to track live train schedules through a partnership with Indian Railways, and there’s support for speech-to-text. It also offers personalized discount coupons from a range of companies, giving users an incentive to check the app more often.

Like in other markets, Google and Facebook hold a dominant position in India. More than 95% of smartphones sold in India run the Android operating system. There is no viable local — or otherwise — alternative to Search, Gmail and YouTube, which counts India as its fastest growing market. But Google hasn’t necessarily made any push to significantly expand the scope of any of its offerings in India.

India is the biggest market for WhatsApp, and Facebook’s marquee app too has more than 250 million users in the nation. WhatsApp launched a pilot payments program in India in early 2018, but is yet to get clearance from the government for a nationwide rollout. (It isn’t happening for at least another two months, a person familiar with the matter said.) In the meanwhile, Facebook appears to be hatching a WeChatization of Messenger, albeit that app is not so big in India.

Ride-hailing service Ola too, like Grab and Go-Jek, plans to add financial services such as credit to the platform this year, a source familiar with the company’s plans told TechCrunch.

“We have an abundance of data about our users. We know how much money they spend on rides, how often they frequent the city and how often they order from restaurants. It makes perfect sense to give them these valued-added features,” the person said. Ola has already branched out of transport after it acquired food delivery startup Foodpanda in late 2017, but it hasn’t yet made major waves in financial services despite giving its Ola Money service its own dedicated app.

The company positioned Ola Money as a super app, expanded its features through acquisition and tie ups with other players and offered discounts and cashbacks. But it remains behind Paytm, PhonePe and Google Pay, all of which are also offering discounts to customers.

Integrated entertainment

Super apps indeed come in all shapes and sizes, beyond core services like payment and transportation — the strategy is showing up in apps and services that entertain India’s internet population.

MX Player, a video playback app with more than 175 million users in India that was acquired by Times Internet for some $140 million last year, has big ambitions. Last year, it introduced a video streaming service to bolster its app to grow beyond merely being a repository. It has already commissioned the production of several original shows.

In recent months, it has also integrated Gaana, the largest local music streaming app that is also owned by Times Internet. Now its parent company, which rivals Google and Facebook on some fronts, is planning to add mini games to MX Player, a person familiar with the matter said, to give it additional reach and appeal.

Some of these apps, especially those that have amassed tens of millions of users, have a real shot at diversifying their offerings, analyst Kolla said. There is a bar of entry, though. A huge user base that engages with a product on a daily basis is a must for any company if it is to explore chasing the super app status, he added.

Indeed, there are examples of companies that had the vision to see the benefits of super apps but simply couldn’t muster the requisite user base. As mentioned, Snapdeal tried and failed at expanding its app’s offerings. Messaging service Hike, which was valued at more than $1 billion two years ago and includes WeChat parent Tencent among its investors, added games and other features to its app, but ultimately saw poor engagement. Its new strategy is the reverse: to break its app into multiple pieces.

“In 2019, we continue to double down on both social and content but we’re going to do it with an evolved approach. We’re going to do it across multiple apps. That means, in 2019 we’re going to go from building a super app that encompasses everything, to Multiple Apps solving one thing really well. Yes, we’re unbundling Hike,” Kavin Mittal, founder and CEO of Hike, wrote in an update published earlier this year.

And Reliance Jio, of course

For the rest, the race is still on, but there are big horses waiting to enter to add further competition.

Reliance Jio, a subsidiary of conglomerate Reliance Industry that is owned by India’s richest man, Mukesh Ambani, is planning to introduce a super app that will host more than 100 features, according to a person familiar with the matter. Local media first reported the development.

It will be fascinating to see how that works out. Reliance Jio, which almost single-handedly disrupted the telecom industry in India with its low-cost data plans and free voice calls, has amassed tens of millions of users on the bouquet of apps that it offers at no additional cost to Jio subscribers.

Beyond that diverse selection of homespun apps, Reliance has also taken an M&A-based approach to assemble the pieces of its super app strategy.

It bought music streaming service Saavn last year and quickly integrated it with its own music app JioMusic. Last month, it acquired Haptik, a startup that develops “conversational” platforms and virtual assistants, in a deal worth more than $100 million. It already has the user bases required. JioTV, an app that offers access to over 500 TV channels; and JioNews, an app that additionally offers hundreds of magazines and newspapers, routinely appear among the top apps in Google Play Store.

India’s super app revolution is in its early days, but the trend is surely one to keep an eye on as the country moves into its next chapter of internet usage.


Source: The Tech Crunch

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Singapore’s Grain, a profitable food delivery startup, pulls in $10M for expansion

Posted by on May 10, 2019 in Asia, bangkok, Cento Ventures, ceo, Deliveroo, Food, food delivery, Foodpanda, funding, Fundings & Exits, grain, Honestbee, Impossible foods, munchery, online food ordering, openspace ventures, Singapore, Southeast Asia, Spotify, Startup company, TC, Thailand, transport, Travis Kalanick, Uber, United States, websites, world wide web | 0 comments

Cloud kitchens are the big thing in food delivery, with ex-Uber CEO Travis Kalanick’s new business one contender in that space, with Asia, and particularly Southeast Asia, a major focus. Despite the newcomers, a more established startup from Singapore has raised a large bowl of cash to go after regional expansion.

Founded in 2014, Grain specializes in clean food while it takes a different approach to Kalanick’s CloudKitchens or food delivery services like Deliveroo, FoodPanda or GrabFood.

It adopted a cloud kitchen model — utilizing unwanted real estate as kitchens, with delivery services for output — but used it for its own operations. So while CloudKitchens and others rent their space to F&B companies as a cheaper way to make food for their on-demand delivery customers, Grain works with its own chefs, menu and delivery team. A so-called ‘full stack’ model if you can stand the cliched tech phrase.

Finally, Grain is also profitable. The new round has it shooting for growth — more on that below — but the startup was profitable last year, CEO and co-founder Yi Sung Yong told TechCrunch.

Now it is reaping the rewards of a model that keeps it in control of its product, unlike others that are complicated by a chain that includes the restaurant and a delivery person.

We previously wrote about Grain when it raised a $1.7 million Series A back in 2016 and today it announced a $10 million Series B which is led by Thailand’s Singha Ventures, the VC arm of the beer brand. A bevy of other investors took part, including Genesis Alternative Ventures, Sass Corp, K2 Global — run by serial investor Ozi Amanat who has backed Impossible Foods, Spotify and Uber among others — FoodXervices and Majuven. Existing investors Openspace Ventures, Raging Bull — from Thai Express founder Ivan Lee — and Cento Ventures participated.

The round includes venture debt, as well as equity, and it is worth noting that the family office of the owners of The Coffee Bean & Tea Leaf — Sassoon Investment Corporation — was involved.

Grain covers individual food as well as buffets in Singapore

Three years is a long gap between the two deals — Openspace and Cento have even rebranded during the intervening period — and the ride has been an eventful one. During those years, Sung said the business had come close to running out of capital before it doubled down on the fundamentals before the precarious runway capital ran out.

In fact, he said, the company — which now has over 100 staff — was fully prepared to self-sustain.

“We didn’t think of raising a Series B,” he explained in an interview. “Instead, we focused on the business and getting profitable… we thought that we can’t depend entirely on investors.”

And, ladies and gentleman, the irony of that is that VCs very much like a business that can self-sustain — it shows a model is proven — and investing in a startup that doesn’t need capital can be attractive.

Ultimately, though, profitability is seen as sexy today — particularly in the meal space where countless U.S. startups has shuttered including Munchery and Sprig — but the focus meant that Grain had to shelve its expansion plans. It then went through soul-searching times in 2017 when a spoilt curry saw 20 customers get food poisoning.

Sung declined to comment directly on that incident, but he said that company today has developed the “infrastructure” to scale its business across the board, and that very much includes quality control.

Grain co-founder and CEO Yi Sung Yong [Image via LinkedIn]

Grain currently delivers “thousands” of meals per day in Singapore, its sole market, with eight-figures in sales per year, he said. Last year, growth was 200 percent, Sung continued, and now is the time to look overseas. With Singha, the Grain CEO said the company has “everything we need to launch in Bangkok.”

Thailand — which Malaysia-based rival Dahamakan picked for its first expansion — is the only new launch on the table, but Sung said that could change.

“If things move faster, we’ll expand to more cities, maybe one per year,” he said. “But we need to get our brand, our food and our service right first.”

One part of that may be securing better deals for raw ingredients and food from suppliers. Grain is expanding its ‘hub’ kitchens — outposts placed strategically around town to serve customers faster — and growing its fleet of trucks, which are retrofitted with warmers and chillers for deliveries to customers.

Grain’s journey is proof that startups in the region will go through trials and tribulations, but being able to bolt down the fundamentals and reduce burn rate is crucial in the event that things go awry. Just look to grocery startup Honestbee, also based in Singapore, for evidence of what happens when costs are allowed to pile up.


Source: The Tech Crunch

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Chipotle customers are saying their accounts have been hacked

Posted by on Apr 17, 2019 in Apps, computer security, credential stuffing, data breach, data security, Food, Hack, multi-factor authentication, Password, Prevention, Privacy, Security, spokesperson | 0 comments

A stream of Chipotle customers have said their accounts have been hacked and are reporting fraudulent orders charged to their credit cards — sometimes totaling hundreds of dollars.

Customers have posted on several Reddit threads complaining of account breaches and many more have tweeted at @ChipotleTweets to alert the fast food giant of the problem. In most cases, orders were put through under a victim’s account and delivered to addresses often not even in the victim’s state.

Many of the customers TechCrunch spoke to in the past two days said they used their Chipotle account password on other sites. Chipotle spokesperson Laurie Schalow told TechCrunch that credential stuffing was to blame. Hackers take lists of usernames and passwords from other breached sites and brute-force their way into other accounts.

But several customers we spoke to said their password was unique to Chipotle. Another customer said they didn’t have an account but ordered through Chipotle’s guest checkout option.

Tweets from Chipotle customers. (Screenshot: TechCrunch)

When we asked Chipotle about this, Schalow said the company is “monitoring any possible account security issues of which we’re made aware and continue to have no indication of a breach of private data of our customers,” and reiterated that the company’s data points to credential stuffing.

It’s a similar set of complaints made by DoorDash customers last year, who said their accounts had been improperly accessed. DoorDash also blamed the account hacks on credential stuffing, but could not explain how some accounts were breached even when users told TechCrunch that they used a unique password on the site.

If credential stuffing is to blame for Chipotle account breaches, rolling out two-factor authentication would help prevent the automated login process — and, put an additional barrier between a hacker and a victim’s account.

But when asked if Chipotle has plans to roll out two-factor authentication to protect its customers going forward, spokesperson Schalow declined to comment. “We don’t discuss our security strategies.”

Chipotle reported a data breach in 2017 affecting its 2,250 restaurants. Hackers infected its point-of-sale devices with malware, scraping millions of payment cards from unsuspecting restaurant goers. More than a hundred fast food and restaurant chains were also affected by the same malware infections.

In August, three suspects said to be members of the FIN7 hacking and fraud group were charged with the credit card thefts.


Source: The Tech Crunch

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Our 9 favorite startups from Y Combinator W19 Demo Day 2

Posted by on Mar 22, 2019 in Apps, Biotech, Food, funding, GreenTech, Hardware, Health, Logistics, Startups, TC | 0 comments

Heathcare kiosks, a home-cooked food marketplace, and a way for startups to earn interest on their funding topped our list of high-potential companies from Y Combinator’s Winter 2019 Demo Day 2. 88 startups launched on stage at the lauded accelerator, though some of the best skipped the stage as they’d already raised tons of money.

Be sure to check out our write-ups of all 85 startups from day 1 plus our top picks, as well as the full set from day 2. But now, after asking investors and conferring with the TechCrunch team, here are our 9 favorites from day 2.

Shef 

Two months ago, California passed the first law in the country legalizing the sale of home cooked food. Shef creates a marketplace where home chefs can find nearby customers. Shef’s meals cost around $6.50 compared to $20 per meal for traditional food delivery, and the startup takes a 22 percent cut of every transaction. It’s been growing 50 percent week over week thanks to deals with large property management companies that offer the marketplace as a perk to their residents. Shef wants to be the Airbnb of home cooked food.

Why we picked Shef: Deregulation creates gold rush opportunities and Shef was quick to seize this one, getting started just days after the law passed. Food delivery is a massive megatrend but high costs make it unaffordable or a luxury for many. If a parent is already cooking meals for their whole family, it takes minimal effort to produce a few extra portions to sell to the neighbors at accessible rates.

Handle

This startup automates the collection process of unpaid construction invoices. Construction companies are often forced to pay for their own jobs when customers are late on payments. According to Handle, there are $104 billion in unpaid construction invoices every year. Handle launched six weeks ago and is currently collecting $22,800 in monthly revenue. The founders previously launched an Andreessen Horowitz-backed company called Tenfold.

Why we picked Handle: Construction might seem like an unsexy vertical, but it’s massive and rife with inefficiencies this startup tackles. Handle helps contractors demand payments, instantly file liens that ensure they’re compensated for work or materials, or exchange unpaid invoices for cash. Even modest fees could add up quickly given how much money moves through the industry. And there are surely secondary business models to explore using all the data Handle collects on the construction market.

Blueberry Medical

This pediatric telemedicine company provides medical care instantly to families. Blueberry provides constant contact, the ability to talk to a pediatrician 24/7 and at-home testing kits for a total of $15 per month. They’ve just completed a paid consumer pilot and say they were able to resolve 84 percent of issues without in-person care. They’ve partnered with insurance providers to reduce ER visits.

Why we picked Blueberry: Questionable emergency room visits are a nightmare for parents, a huge source of unnecessary costs, and a drain on resources for needy patients. Parents already spend so much time and money trying to keep their kids safe that this is a no-brainer subscription. And the urgent and emotional pull of pediatrics is a smart wedge into telemedicine for all demographics.

rct studio

Led by a team of YC alums behind Raven, an AI startup acquired by Baidu in 2017, rct studio is a creative studio for immersive and interactive film. The platform provides a real time “text to render “engine (so the text “A man sits on a sofa” would generate 3D imagery of a man sitting on a sofa) that supports mainstream 3D engines like Unity and Unreal, as well as a creative tool for film professionals to craft immersive and open-ended entertainment experiences called Morpheus Engine.

Why we picked rct studio: Netflix’s Bandersnatch was just the start of mainstream interactive film. With strong technology, an innovative application, and proven talent, rct could become a critical tool for creating this kind of media. And even if the tech falls short of producing polished media, it could be used for storyboards and mockups.

Interprime

Provides “Apple level” treasury services to startups. Startups are raising a lot of money with no way to manage it, says Interprime. They want to help these businesses by managing these big investments by helping them earn interest on their funding while retaining liquidity. They take a .25 percent advisory fee for all the investment they oversee. So far, they have $10 million in investment capital they are servicing.

Why we picked Interprime: The explosion of early stage startup funding evidenced by Y Combinator itself has created new banking opportunities. Silicon Valley Bank is ripe for competition and Interprime’s focus on startups could unlock new financial services. With Interprime’s YC affiliation, it has access to tons of potential customers.

 

Nabis

Nabis is tackling the cannabis shipping and logistics business, working with suppliers to ship out goods to retailers reliably. It’s illegal for FedEx to ship weed so Nabis has swooped in and is helping ship and connect while taking cuts of the proceeds, a price the suppliers are willing to pay due to their 98 percent on-time shipping record.

Why we picked Nabis: Quirky regulation creates efficiency gaps in the marijuana business where incumbents can’t participate since they’re not allowed to handle the flower. As more states legalize and cannabis finds its way into more products, moving goods from farm to processor to retailer could spawn a big market for Nabis with a legal moat. It’s already working with many top marijuana brands, and could sell them additional services around business intelligence and distribution.

WeatherCheck

This startup measures weather damage for insurance companies. WeatherCheck has secured $4.7 million in annual bookings in the five months since it launched to help insurance carriers reduce their overall claims expense. To use the service, insurers upload data about their properties. WeatherCheck then monitors the weather and sends notifications to insurance companies, if, for example, a property has been damaged by hail.

Why we picked WeatherCheck: Extreme weather is only getting worse due to climate change. With 10.7 million US properties impacted by hail damage in 2017, WeatherCheck has found a smart initial market from which to expand. It’s easy to imagine the startup working on flood, earthquake, tornado, and wildfire claims too. Insurance is a fierce market, and old-school providers could get a leg up with WeatherCheck’s tech.

 

Upsolve

Upsolve wants to help low-income individuals file for bankruptcy more easily. The non-profit service gets referral fees from pointing non low-income families to bankruptcy lawyers and is able to offer the service for free. The company says that medical bills, layoffs and predatory loans can leave low-income families in dire situations and that in the last 6 months, their non-profit has alleviated customers from $24 million in debt.

Why we picked Upsolve: Financial hardship is rampant. With the potential for another recession and automation threatening jobs, many families could be at risk for bankruptcy. But the process is so stigmatized that some people avoid it at all costs. Upsolve could democratize access to this financial strategy while inserting itself into a lucrative transaction type.

Pulse Active Stations Network

This startup makes health kiosks for India, meant to be installed in train stations. Co-founder Joginder Tanikella says that there are 600,000 preventable deaths in India as many in the region don’t get regular doctor checkups. “But everyone takes trains,” he says. Their in-station kiosk measures 21 health parameters. The company made $28,000 in revenue last month. Charging $1 per test, Tanikella says each machine pays for itself within 3 months. In the future, the kiosks will allow them to sell insurance and refer users to doctors.

Why we picked Pulse: Telemedicine can’t do everything, but plenty of people around the world can’t make it in to a full-fledged doctor’s office. Pulse creates a mid-point where hardware sensors can measure body fat, blood pressure, pulse, and bone strength to improve accuracy for diagnosing diabetes, osteoarthritis, cardiac problems, and more. Pulse’s companion app could spark additional revenue streams, and there’s clearly a much bigger market for this than just India.

Honorable Mentions

-Allo, a marketplace where parents can exchange babysitting and errand-running

-Shiok, a lab-grown shrimp substitute

-WithFriends, a subscription platform for small retail businesses

More Y Combinator coverage from TechCrunch:

Additional reporting by Kate Clark, Lucas Matney, and Greg Kumparak


Source: The Tech Crunch

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Former Dropbox exec Dennis Woodside joins Impossible Foods as its first President

Posted by on Mar 14, 2019 in California, Chief Operating Officer, cloud storage, Companies, computing, dennis woodside, Dropbox, executive, Food, food and drink, Google, Impossible foods, manufacturing, meat substitutes, Motorola Mobility, president, Redwood City, Singapore, supply chain, TC, United States | 0 comments

Former Google and Dropbox executive Dennis Woodside has joined the meat replacement developer Impossible Foods as the company’s first President.

Woodside, who previously shepherded Dropbox through its initial public offering, is a longtime technology executive who is making his first foray into the food business.

The 25-year tech industry veteran most recently served as the chief operating officer of Dropbox, and previously was the chief executive of Motorola Mobility after that company’s acquisition by Google.

“I love what Impossible Foods is doing: using science and technology to deliver delicious and nutritious foods that people love, in an environmentally sustainable way,” Woodside said. “I’m equally thrilled to focus on providing the award-winning Impossible Burger and future products to millions of consumers, restaurants and retailers.”

According to a statement, Woodside will be responsible for the company’s operations, manufacturing, supply chain, sales, marketing, human resources and other functions.

The company currently has a staff of 350 divided between its Redwood City, Calif. and Oakland manufacturing plant.

Impossible Foods now slings its burger in restaurants across the United States, Hong Kong, Macau and Singapore and is expecting to launch a grocery store product later this year.


Source: The Tech Crunch

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DoorDash claims drivers made an average of at least $17.50/hour on deliveries in 2018

Posted by on Mar 13, 2019 in DoorDash, Food, Logistics, Startups | 0 comments

On-demand food delivery startup DoorDash has been under fire as of late for its practices around paying drivers. In an email to drivers today, obtained by TechCrunch, DoorDash said drivers received an average of $17.50 or more per hour on deliveries in 2018. That figure, of course, does not take into account cost of mileage, payroll taxes for 1099 independent contractors and other expenses.

Sage Wilson, an organizer at nonprofit labor group Working Washington, explained to TechCrunch how that $17.50 per hour figure works out to less than $6 per hour — not including tips, cost of expenses and taxes. That figure, he said, is “based on our review of actual weekly pay data from DoorDash drivers” and an estimate that about 30 percent of the total income comes from tips.

DoorDash currently offsets the amount it pays drivers with customer tips. DoorDash describes its payment structure as follows: $1 plus customer tip plus pay boost, which varies based on the complexity of order, distance to restaurants and other factors. It’s only when a customer doesn’t tip at all, which DoorDash told Fast Company happens about 15 percent of the time, that DoorDash is on the hook to pay the entire guaranteed amount.

In the email sent to drivers today, with “Listening to the Dasher community” in the subject line, DoorDash CEO Tony Xu notes the level of recent discussion pertaining to DoorDash’s pay model. He goes on to defend the company’s practices, saying “we continue to hear from many of you that the model works: you know how much you’ll receive in advance, you receive the guaranteed minimum even if the customer doesn’t tip…”

He does add, however, “But we’ve also heard from some who expressed confusion about how pay is calculated and what happens with tips.”

In the coming weeks, DoorDash said it will launch surveys and organize roundtables for drivers to share their thoughts and concerns. In the email, DoorDash provides a link for drivers to sign up to be included. From there, Xu said DoorDash will look over the feedback, report what it has learned and “what changes we plan to make in response.”

This current model was the result of “months of testing” and surveys of thousands of Dashers. I’ve reached out to DoorDash and will update this story if I hear back.


Source: The Tech Crunch

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Bottomless has a solution for lazy coffee addicts

Posted by on Mar 11, 2019 in Accelerator, Amazon, Coffee, digital assistant, drinks, Food, food and drink, funding, Google, Philz Coffee, Portland, San Francisco, Seattle, Startups, TC, Y Combinator | 0 comments

If you’re like me, you let out a heavy sigh every month or so when you reach out and unexpectedly find an empty bag of coffee. Bottomless, one of the 200-plus startups in Y Combinator’s latest batch, has a solution for us caffeine addicts.

For a $36 annual membership fee, a cost which co-founder Michael Mayer says isn’t set in stone, plus $11.29 per order depending on the blend, Bottomless will automatically restock your coffee supply before you run out. How? The startup sends its members an internet-connected scale free of charge, which members place under their bag of coffee grounds. Tracking the weight of the bag, Bottomless’ scales determine when customers are low on grounds and ensure a new bag of previously selected freshly roasted coffee is on their doorstep before they run out.

Voilà, no more coffee-less mornings.

Founded by Seattle-based husband and wife duo Mayer and Liana Herrera in 2016, Bottomless began as a passion project for Mayer, a former developer at Nike.com. Herrera kept working as a systems implementations specialist until Bottomless secured enough customers to justify the pair working on the project full-time. That was in 2018; months later, after their second attempt at applying, they were admitted into the Y Combinator accelerator program.

Bottomless’ smart scale

Bottomless today counts around 400 customers and has inked distribution deals with Four Barrel and Philz Coffee, among other roasters. Including the $150,000 investment YC provides each of its startups, Bottomless previously raised a pre-seed round from San Francisco and Seattle-area angel investors.

Before relocating to San Francisco for YC, the Bottomless founders were working feverishly out of their Seattle home.

“This whole time we’ve been 3D-printing prototypes out of our apartment and soldering them together out of our apartment,” Mayer told TechCrunch. “We kind of turned our place into this new manufacturing facility. There’s dust everywhere and it’s crazy. But we made 150 units ourselves by hand-soldering and lots of burned fingers.”

The long-term goal is to automate the restocking process of several household items, like pet food, soap and shampoo. Their challenge will be getting customers to keep multiple smart scales in their homes as opposed to just asking their digital assistant to order them some coffee or soap on Amazon .

Amazon recently announced it was doing away with its stick-on Dash buttons, IoT devices capable of self-ordering on Amazon. The devices launched in 2015 before Google Homes and Amazon Alexas hit the mainstream.

So why keep a smart scale in your kitchen as opposed to just asking a digital assistant to replenish your supply? Mayer says it’s coffee quality that keeps it competitive.

“Some of our most enthusiastic customers live out in like deep suburbs far away from city centers, but they really love fresh coffee,” Mayer said.And there’s no way to get fresh coffee if you live 20 or 30 minutes from a city center, right?”

“Or you might think in a city like San Francisco or Seattle, you can get freshly roasted coffee pretty easily because there are restaurants all over the place, right?” He added. “That’s certainly true, but it does take a little bit of extra thought to remember to grab it on the right day when you’re running low.”

Mayer and Herrera don’t consider themselves coffee experts, despite now running what is essentially a direct-to-consumer coffee marketplace out of Seattle, the coffee capital.

“I’m originally from Portland and Portlanders know a lot about coffee,” Mayer said. “I never really considered myself to be a coffee aficionado or a coffee snob in my head, but I guess compared to like the average American from anywhere in the country, I would be just a regular coffee drinker in Portland. All I really knew about coffee going into this was that it’s better fresh. That’s it.”

Bottomless is currently accepting customers in beta. The team will pitch to investors at YC Demo Days next week.


Source: The Tech Crunch

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VCs have growing appetite for ‘AgriFood’

Posted by on Mar 7, 2019 in AgFunder, agriculture, agriculture tech, AgTech, Asia, Biotech, CrunchBase, economy, entrepreneurship, farming, Finance, Food, food delivery, food tech, funding, GreenTech, groceries, grocery, McKinsey, money, Naspers, Private Equity, restaurant tech, Restaurants, Softbank, Startup company, Startups, TC, Venture Capital, Zume Pizza | 0 comments

Venture investors are pouring billions of dollars into feeding their hunger for food and agriculture startups. Whether that trend line is due to enthusiasm for the sector or just broader heavy investing in the VC space is much less clear.

According to a recent report published by AgFunder – a VC and investing marketplace focused on the agriculture and food sectors – the “AgriFood” space is booming. Using data from Crunchbase and several other data partners, the organization published its “2018 AgriFood Tech Investing Report” this morning, finding that investment in AgriFood companies increased 43% year-over-year, reaching $16.9 billion in 2018.

AgFunder classifies AgriFood tech as “the small but growing segment of the startup and venture capital universe that’s aiming to improve or disrupt the global food and agriculture industry.” Their definition is intentionally broad, encompassing everything from crop and livestock biotech, property management systems, and payments, to biomaterials and meat alternatives, all the way up to tech platforms for restaurants, grocers, deliveries and at-home cooks.

While some of the AgriFood tech categories – such as delivery or restaurant software – have long been popular destinations for venture capital, we’re now seeing a more diverse array of startups innovating across the entire food supply chain. According to the report, expansion in AgriFood is fairly consistent across upstream (agricultural and farming) subsectors to downstream (more consumer-facing) subsectors, with each group growing roughly 44% and 42% year-over-year respectively.

The data also shows growth occurring across almost all deal stages. AgriFood saw huge increases in the average deal size and total investment for late-stage companies in particular, as venture-backed startups have grown to global scale. And penetrating and attracting capital from international markets seems more feasible than ever. AgriFood investing, which traditionally has been largely US-centric, is rapidly becoming a global phenomenon, with more than half of total funding – and some of the largest rounds – now coming from companies and investors outside the US.


Source: The Tech Crunch

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Go-Jek’s Get app officially launches in Thailand as Southeast Asia expansion continues

Posted by on Feb 28, 2019 in Asia, bangkok, carsharing, ceo, Collaborative Consumption, countries, Food, go-jek, grab, Indonesia, Philippines, Singapore, Softbank, Southeast Asia, Thailand, transport, Uber, vietnam | 0 comments

Go-Jek is extending its reach in Southeast Asia after its Thailand-based unit made its official launch, which included the addition of a new food delivery service.

Get, which is the name for Go-Jek business in Thailand, started out last year offering motorbike taxi on-demand services to a limited part of Thai capital city Bangkok, now the company said it has expanded the bikes across the city and added food and delivery options. Get’s management team is composed of former Uber staffers while CEO Pinya Nittayakasetwat was recruited from chat app Line’s food delivery business.

Over the last two months, Get claims to have completed two million trips in the past two months. There’s no word on when Get will add four-wheeled transport options, however. On the food side, Get is claiming to have 20,000 merchants on its platform but there are some issues. Rumming through the app, I found a number of listed restaurants that didn’t include menus. In those instances, customers have to input their dish and price which makes it pretty hard to use.

Go-Jek’s Get app in Thailand doesn’t include menus for a number of restaurants, making it nearly impossible to order

Grab is the dominant player in Thailand, where it offers taxis, private cars, motorbikes, delivery and food across eight markets in Southeast Asia. Go-Jek rose to success in its native Indonesia, where it began offering motorbikes on demand but has expanded to cover taxi, cars, food, general services on-demand and fintech. Its investors include Google, Tencent, Meituan and Sequoia India.

That’s the same playbook Grab is using, but Go-Jek is taking its time with its market expansions. Thailand represents its third new market beyond Indonesia, following launches in Vietnam and Singapore. The Philippines is another market where Go-Jek has voiced a desire to be present — it has even made an acquisition there — but regulatory issues are holding up a launch.

Regional expansion doesn’t come cheap and Go-Jek is in the midst of raising $2 billion to finance these moves. It recently closed $1 billion from existing investors, and Deal Street Asia reports that it could raise as much as $3 billion for the entire Series F round. That’s likely in response to Grab’s own fundraising plans. The Singapore-based company closed $2 billion last year, but it is looking to increase that total to $5 billion with a major injection from SoftBank’s Vision Fund a key piece of that puzzle.


Source: The Tech Crunch

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With $90 million in funding, the Ginkgo spinoff Motif joins the fight for the future of food

Posted by on Feb 26, 2019 in Amazon Web Services, bEYOND meat, Bill Gates, biotechnology, Breakthrough Energy Ventures, Chief Operating Officer, Co-founder, Food, food and drink, Ginkgo Bioworks, head, Impossible foods, jack ma, Jason Kelly, jeff bezos, John Doerr, manufacturing, Marc Benioff, Masayoshi Son, meat, meat substitutes, meg whitman, michael bloomberg, monsanto, partner, protein, Reid Hoffman, richard branson, TC, Tyson Foods, Vinod Khosla, web services | 0 comments

Continuing its quest to become the Amazon Web Services for biomanufacturing, <a href=”http://ginkgobioworks.com/”>Ginkgo Bioworks has launched a new spinoff called Motif Ingredients with $90 million in funding to develop proteins that can serve as meat and dairy replacements.

It’s the second spinout for Ginkgo since late 2017 when the company partnered with Bayer to launch Joyn Bio, a startup researching and developing bacteria that could improve crop yields.

Now, with Motif, Ginkgo is tackling the wild world of protein replacements for the food and beverage industry through the spinoff of Motif Ingredients.

It’s a move that’s likely going to send shockwaves through several of the alternative meat and dairy companies that were using Ginkgo as their manufacturing partner in their quest to reduce the demand for animal husbandry — a leading contributor to global warming — through the development of protein replacements.

“To help feed the world and meet consumers’ evolving food preferences, traditional and complementary nutritional sources need to co-exist. As a global dairy nutrition company, we see plant- and fermentation-produced nutrition as complementary to animal protein, and in particular cows’ milk,” said Judith Swales, the Chief Operating Officer, for the Global Consumer and Foodservice Business, of Fonterra, an investor in Ginkgo’s new spinout.

To ensure the success of its new endeavor Ginkgo has raised $90 million in financing from industry insiders like Fonterra and the global food processing and trading firm Louis Dreyfus Co., while also tapping the pool of deep-pocketed investors behind Breakthrough Energy Ventures, the climate focused investment fund financed by a global gaggle of billionaires including Marc Benioff, Jeff Bezos, Michael Bloomberg, Richard Branson, Bill Gates, Reid Hoffman, John Doerr, Vinod Khosla, Jack Ma, Neil Shen, Masayoshi Son, and Meg Whitman.

Leading Ginkgo’s latest spinout is a longtime veteran of the food and beverage industry, Jonathan McIntyre, the former head of research and development at another biotechnology startup focused on agriculture — Indigo Ag.

McIntyre, who left Indigo just two years after being named the company’s head of research and development, previously had stints at Monsanto, Nutrasweet, and PepsiCo (in both its beverage and snack divisions).

“There’s an opportunity to produce proteins,” says McIntyre. “Right now as population grows the protein supply is going to be challenged. Motif gives the ability to create proteins and make products from low cost available genetic material.”

Photo: paylessimages/iStock

Ginkgo, which will have a minority stake in the new company, will provide engineering and design work to Motif and provide some initial research and development work on roughly six to nine product lines.

That push, with the financing, and Ginkgo’s backing as the manufacturer of new proteins for Motif Ingredients should put the company in a comfortable position to achieve McIntyre’s goals of bringing his company’s first products into the market within the next two years. All Motif has to pay is cost plus slight overhead for the Ginkgo ingredients.

“We started putting Motif together around February or March of 2018,” says Ginkgo co-founder Jason Kelly of the company’s plans. “The germination of the business had its inception earlier though, from interacting with companies in the food and beverage scene. When we talked to these companies the strong sense we got was if there had been a trusted provider of outsourced protein development they would have loved to work with us.”

The demand from consumers for alternative sources of protein and dairy — that have the same flavor profiles as traditional dairy and meats — has reached an inflection point over the past few years. Certainly venture capital interest into the industry has soared along with the appetite from traditional protein purveyors like Danone, Tyson Foods, and others to take a bite out of the market.

Some industry insiders think it was Danone’s 2016 acquisition of WhiteWave in a $12.5 billion deal that was the signal which brought venture investors and food giants alike flocking to startups that were developing meat and dairy substitutes. The success of companies like Beyond Meat and Impossible Foods has only served to prove that a growing market exists for these substitutes.

At the same time, solving the problem of protein for a growing global population is critical if the world is going to reverse course on climate change. Agriculture and animal husbandry are huge contributors to the climate crisis and ones for which no solution has made it to market.

Investors think cultured proteins — fermented in tanks like brewing beer — could be an answer.

Photograph: David Parry/EPA

“Innovative or disruptive solutions are key to responding to changing consumer demand and to addressing the challenge of feeding a growing world population sustainably,” said Kristen Eshak Weldon, Head of Food Innovation & Downstream Strategy at Louis Dreyfus Company (LDC), a leading merchant and processor of agricultural goods. “In this sense, we are excited to partner with Motif, convinced that its next-generation ingredients will play a vital role.”

Breakthrough Energy Ventures certainly thinks so.

The investment firm has been busy placing bets across a number of different biologically based solutions to reduce the emissions associated with agriculture and cultivation. Pivot Bio is a startup competing with Ginkgo’s own Joyn Bio to create nitrogen fixing techniques for agriculture. And earlier this month, the firm invested as part of a $33 million round for Sustainable Bioproducts, which is using a proprietary bacteria found in a remote corner of Yellowstone National Park to make its own protein substitute.

For all of these companies, the goal is nothing less than providing a commercially viable technology to combat some of the causes of climate change in a way that’s appealing to the average consumer.

“Sustainability and accessible nutrition are among the biggest challenges facing the food industry today. Consumers are demanding mindful food options, but there’s a reigning myth that healthy and plant-based foods must come at a higher price, or cannot taste or function like the animal-based foods they aim to replicate,” said McIntyre, in a statement. “Biotechnology and fermentation is our answer, and Motif will be key to propelling the next food revolution with affordable, sustainable and accessible ingredients that meet the standards of chefs, food developers, and visionary brands.”


Source: The Tech Crunch

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