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Saturday, September 21, 2019

Facebook has acquired Servicefriend, which builds ‘hybrid’ chatbots, for Calibra customer service

As Facebook prepares to launch its new cryptocurrency Libra in 2020, it’s putting the pieces in place to help it run. In one of the latest developments, it has acquired Servicefriend, a startup that built bots — chat clients for messaging apps based on artificial intelligence — to help customer service teams, TechCrunch has confirmed.

The news was first reported in Israel, where Servicefriend is based, after one of its investors, Roberto Singler, alerted local publication The Marker about the deal. We reached out to Ido Arad, one of the co-founders of the company, who referred our questions to a team at Facebook. Facebook then confirmed the acquisition with an Apple-like non-specific statement:

“We acquire smaller tech companies from time to time. We don’t always discuss our plans,” a Facebook spokesperson said.

Several people, including Arad, his co-founder Shahar Ben Ami, and at least one other indicate that they now work at Facebook within the Calibra digital wallet group on their LinkedIn profiles. Their jobs at the social network started this month, meaning this acquisition closed in recent weeks. (Several others indicate that they are still at Servicefriend, meaning they too may have likely made the move as well.)

Although Facebook isn’t specifying what they will be working on, the most obvious area will be in building a bot — or more likely, a network of bots — for the customer service layer for the Calibra digital wallet that Facebook is developing.

Facebook’s plan is to build a range of financial services for people to use Calibra to pay out and receive Libra — for example, to send money to contacts, pay bills, top up their phones, buy things and more.

It remains to be seen just how much people will trust Facebook as a provider of all these. So that is where having “human” and accessible customer service experience will be essential.

“We are here for you,” Calibra notes on its welcome page, where it promises 24-7 support in WhatsApp and Messenger for its users.

Screenshot 2019 09 21 at 23.25.18

Servicefriend has worked on Facebook’s platform in the past: specifically it built “hybrid” bots for Messenger for companies to use to complement teams of humans, to better scale their services on messaging platforms. In one Messenger bot that Servicefriend built for Globe Telecom in the Philippines, it noted that the hybrid bot was able to bring the “agent hours” down to under 20 hours for each 1,000 customer interactions.

Bots have been a relatively problematic area for Facebook. The company launched a personal assistant called M in 2015, and then bots that let users talk to businesses in 2016 on Messenger, with quite some fanfare, although the reality was that nothing really worked as well as promised, and in some cases worked significantly worse than whatever services they aimed to replace.

While AI-based assistants such as Alexa have become synonymous with how a computer can carry on a conversation and provide information to humans, the consensus around bots these days is that the most workable way forward is to build services that complement, rather than completely replace, teams.

For Facebook, getting its customer service on Calibra right can help it build and expand its credibility (note: another area where Servicefriend has build services is in using customer service as a marketing channel). Getting it wrong could mean issues not just with customers, but with partners and possibly regulators.



from Social – TechCrunch https://ift.tt/2LEZWVq Facebook has acquired Servicefriend, which builds ‘hybrid’ chatbots, for Calibra customer service Ingrid Lunden https://ift.tt/30EDJv9
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Facebook has acquired Servicefriend, which builds ‘hybrid’ chatbots, for Calibra customer service

As Facebook prepares to launch its new cryptocurrency Libra in 2020, it’s putting the pieces in place to help it run. In one of the latest developments, it has acquired Servicefriend, a startup that built bots — chat clients for messaging apps based on artificial intelligence — to help customer service teams, TechCrunch has confirmed.

The news was first reported in Israel, where Servicefriend is based, after one of its investors, Roberto Singler, alerted local publication The Marker about the deal. We reached out to Ido Arad, one of the co-founders of the company, who referred our questions to a team at Facebook. Facebook then confirmed the acquisition with an Apple-like non-specific statement:

“We acquire smaller tech companies from time to time. We don’t always discuss our plans,” a Facebook spokesperson said.

Several people, including Arad, his co-founder Shahar Ben Ami, and at least one other indicate that they now work at Facebook within the Calibra digital wallet group on their LinkedIn profiles. Their jobs at the social network started this month, meaning this acquisition closed in recent weeks. (Several others indicate that they are still at Servicefriend, meaning they too may have likely made the move as well.)

Although Facebook isn’t specifying what they will be working on, the most obvious area will be in building a bot — or more likely, a network of bots — for the customer service layer for the Calibra digital wallet that Facebook is developing.

Facebook’s plan is to build a range of financial services for people to use Calibra to pay out and receive Libra — for example, to send money to contacts, pay bills, top up their phones, buy things and more.

It remains to be seen just how much people will trust Facebook as a provider of all these. So that is where having “human” and accessible customer service experience will be essential.

“We are here for you,” Calibra notes on its welcome page, where it promises 24-7 support in WhatsApp and Messenger for its users.

Screenshot 2019 09 21 at 23.25.18

Servicefriend has worked on Facebook’s platform in the past: specifically it built “hybrid” bots for Messenger for companies to use to complement teams of humans, to better scale their services on messaging platforms. In one Messenger bot that Servicefriend built for Globe Telecom in the Philippines, it noted that the hybrid bot was able to bring the “agent hours” down to under 20 hours for each 1,000 customer interactions.

Bots have been a relatively problematic area for Facebook. The company launched a personal assistant called M in 2015, and then bots that let users talk to businesses in 2016 on Messenger, with quite some fanfare, although the reality was that nothing really worked as well as promised, and in some cases worked significantly worse than whatever services they aimed to replace.

While AI-based assistants such as Alexa have become synonymous with how a computer can carry on a conversation and provide information to humans, the consensus around bots these days is that the most workable way forward is to build services that complement, rather than completely replace, teams.

For Facebook, getting its customer service on Calibra right can help it build and expand its credibility (note: another area where Servicefriend has build services is in using customer service as a marketing channel). Getting it wrong could mean issues not just with customers, but with partners and possibly regulators.



https://ift.tt/2LEZWVq Facebook has acquired Servicefriend, which builds ‘hybrid’ chatbots, for Calibra customer service https://ift.tt/30EDJv9

Meet Facebook’s latest fake

Facebook CEO Mark Zuckerberg, a 35-year-old billionaire who keeps refusing to sit in front of international parliamentarians to answer questions about his ad business’ impact on democracy and human rights around the world, has a new piece of accountability theatre to sell you: An “Oversight Board“.

Not of Facebook’s business itself. Though you’d be forgiven for thinking that’s what Facebook’s blog post is trumpeting, with the grand claim that it’s “Establishing Structure and Governance for an Independent Oversight Board”.

Referred to during the seeding stage last year, when Zuckerberg gave select face-time to podcast and TV hosts he felt comfortable would spread his conceptual gospel with a straight face, as a sort of ‘Supreme Court of Facebook’, this supplementary content decision-making body has since been outfitted in the company’s customary (for difficult topics) bloodless ‘Facebookese’ (see also “inauthentic behavior”; its choice euphemism for fake activity on its platform)

The Oversight Board is intended to sit atop the daily grind of Facebook content moderation, which takes place behind closed doors and signed NDAs, where outsourced armies of contractors are paid to eyeball the running sewer of hate, abuse and violence so actual users don’t have to, as a more visible mechanism for resolving and thus (Facebook hopes) quelling speech-related disputes.

Facebook’s one-size-fits-all content moderation policy doesn’t and can’t. There’s no such thing as a 2.2BN+ “community” — as the company prefers to refer to its globe-spanning user-base. So quite how the massive diversity of Facebook users can be meaningfully represented by the views of a last resort case review body with as few as 11 members has not yet been made clear.

“When it is fully staffed, the board is likely to be forty members. The board will increase or decrease in size as appropriate,” Facebook writes vaguely this week.

Even if it were proposing one board member per market of operation (and it’s not) that would require a single individual to meaningfully represent the diverse views of an entire country. Which would be ludicrous, as well as risking the usual political divides from styming good faith effort.

It seems most likely Facebook will seek to ensure the initial make-up of the board reflects its corporate ideology — as a US company committed to upholding freedom of expression. (It’s clearly no accident the first three words in the Oversight Board’s charter are: “Freedom of expression”.)

Anything less US-focused might risk the charter’s other clearly stated introductory position — that “free expression is paramount”.

But where will that leave international markets which have suffered the worst kinds of individual and societal harms as a consequence of Facebook’s failure to moderate hate speech, dangerous disinformation and political violence, to name a few of the myriad content scandals that dog the company wherever it goes.

Facebook needs international markets for its business to turn a profit. But you sure wouldn’t know it from its distribution of resources. Not for nothing has the company been accused of digital colonialism.

The level of harm flowing from Facebook decisions to take down or leave up certain pieces of content can be excruciatingly high. Such as in Myanmar where its platform became a conduit for hate speech-fuelled ethnic violence towards the Rohingya people and other ethnic minorities.

It’s reputational-denting failures like Myanmar — which last year led the UN to dub Facebook’s platform “a beast” — that are motivating this latest self-regulation effort. Having made its customary claim that it will do a better job of decision-making in future, Facebook is now making a show of enlisting outsiders for help.

The wider problem is Facebook has scaled so big its business is faced with a steady pipeline of tricky, controversial and at times life-threatening content moderation decisions. Decisions it claims it’s not comfortable making as a private company. Though Facebook hasn’t expressed discomfort at monetizing all this stuff. (Even though its platform has literally been used to target ads at nazis.)

Facebook’s size is humanity’s problem but of course Facebook isn’t putting it like that. Instead — coming sometime in 2020 — the company will augment its moderation processes with a lottery-level chance of a final appeal via a case referral to the Oversight Board.

The level of additional oversight here will of course be exceptionally select. This is a last resort, cherry-picked appeal layer that will only touch a fantastically tiny proportion of the content choices Facebook moderators make every second of every day — and from which real world impacts ripple out and rain down. 

“We expect the board will only hear a small number of cases at first, but over time we hope it will expand its scope and potentially include more companies across the industry as well,” Zuckerberg writes this week, managing output expectations still many months ahead of the slated kick off — before shifting focus onto the ‘future hopes’ he’s always much more comfortable talking about. 

Case selection will be guided by Facebook’s business interests, meaning the push, even here, is still for scale of impact. Facebook says cases will be selected from a pool of complaints and referrals that “have the greatest potential to guide future decisions and policies”.

The company is also giving itself the power to leapfrog general submissions by sending expedited cases directly to the board to ask for a speedy opinion. So its content questions will be prioritized. 

Incredibly, Facebook is also trying to sell this self-styled “oversight” layer as independent from Facebook.

The Oversight Board’s overtly bureaucracy branding is pepped up in Facebook headline spin as “an Independent Oversight Board”. Although the adjective is curiously absent from other headings in Facebook’s already sprawling literature about the OB. Including the newly released charter which specifies the board’s authority, scope and procedures, and was published this week.

The nine-page document was accompanied by a letter from Zuckerberg in which he opines on “Facebook’s commitment to the Oversight Board”, as his header puts it — also dropping the word ‘independent’ in favor of slipping into a comfortable familiar case. Funny that.

The body text of Zuckerberg’s letter goes on to make several references to the board as “independent”; an “independent organization”; exercising “its independent judgement”. But here that’s essentially just Mark’s opinion.

The elephant in the room — which, if we continue the metaphor, is in the process of being dressed by Facebook in a fancy costume that attempts to make it look like, well, a board room table — is the supreme leader’s ongoing failure to submit himself and his decisions to any meaningful oversight.

Supreme leader is an accurate descriptor for Zuckerberg as Facebook CEO, given the share structure and voting rights he has afforded himself mean no one other than Zuckerberg can sack Zuckerberg. (Asked last year, during a podcast interview with recode’s Kara Swisher if he was going to fire himself, in light of myriad speech scandals on his platform, Zuckerberg laughed and then declined.)

It’s a corporate governance dictatorship that has allowed Facebook’s boy king to wield vast power around the world without any internal checks. Power without moral responsibility if you will.

Throughout Zuckerberg’s (now) 15-year apology tour turn as Facebook CEO neither the claims he’ll do things differently next time nor the cool expansionist ambition have wavered. He’s still at it of course; with a plan for a global digital currency (Libra), while bullishly colonizing literal hook-ups (Facebook Dating). Anything to keep the data and ad dollars flowing.

Recently Facebook also paid a $5BN FTC fine to avoid its senior executives having to face questions about their data governance and policy enforcement fuck-ups — leaving Zuckerberg & co free to get back to lucrative privacy-screwing business as usual. (To put the fine in context, Facebook’s 2018 full year revenue clocked in at $55.8BN.)

All of which is to say that an ‘independent’ Facebook-devised “Oversight Board” is just a high gloss sticking plaster to cover the lack of actual regulation — internal and external — of Zuckerberg’s empire.

It is also an attempt by Facebook to paper over its continued evasion of democratic accountability. To distract from the fact its ad platform is playing fast and loose with people’s rights and lives; reshaping democracies and communities while Facebook’s founder refuses to answer parliamentarians’ questions or account for scandal-hit business decisions. Privacy is never dead for Mark Zuckerberg.

Evasion is actually a little tame a term. How Facebook operates is far more actively hostile than that. Its platform is reshaping us without accountability or oversight, even as it ploughs profits into spinning and shape-shifting its business in a bid to prevent our democratically elected representatives from being able to reshape it.

Zuckerberg appropriating the language of civic oversight and jurisprudence for this “project”, as his letter calls the Oversight Board — committing to abide by the terms of a content decision-making review vehicle entirely of his own devising, whose Facebook-written charter stipulates it will “review and decide on content in accordance with Facebook’s content policies and values” — is hardly news. Even though Facebook is spinning at the very highest level to try to make it so.

What would constitute a newsworthy shock is Facebook’s CEO agreeing to take questions from the democratically elected representatives of the billions of users of his products who live outside the US.

Zuckerberg agreeing to meet with parliamentarians around the world so they can put to him questions and concerns on a rolling and regular basis would be a truly incredible news flash.

Instead it’s fiction. That’s not how the empire functions.

The Facebook CEO has instead ducked as much democratic scrutiny as a billionaire in charge of a historically unprecedented disinformation machine possibly can — submitting himself to an awkward question-dodging turn in Congress last year; and one fixed-format meeting of the EU parliament’s conference of presidents, initially set to take place behind closed doors (until MEPs protested), where he was heckled for failing to answer questions.

He has also, most recently, pressed US president Donald Trump’s flesh. We can only speculate on how that meeting of minds went. Power meet irresponsibility — or was it vice versa?

 

International parliamentarians trying on behalf of the vast majority of the world’s Facebook users to scrutinize Zuckerberg and hold his advertising business to democratic account have, meanwhile, been roundly snubbed.

Just this month Zuckerberg declined a third invitation to speak in front of the International Grand Committee on Disinformation which will convene in Dublin this November.

At a second meeting in Canada earlier this year Zuckerberg and COO Sheryl Sandberg both refused to appear — leading the Canadian parliament’s ethics committee to vote to subpoena the pair.

While, last year, the UK parliament got so frustrated with Facebook’s evasive behavior during a timely enquiry into online disinformation, which saw its questions fobbed off by a parade of Zuckerberg stand-ins armed with spin and misdirection, that a sort of intergovernmental alchemy occurred — and the International Grand Committee on Disinformation was formed in an eye-blink, bringing multiple parliaments together to apply democratic pressure to Facebook. 

The UK Digital, Culture, Media and Sport committee’s frustration at Facebook’s evasive behavior also led it to deploy arcane parliamentary powers to seize a cache of internal Facebook documents from a US lawsuit in a creative attempt to get at the world-view locked inside Zuckerberg’s blue box.

The unvarnished glimpse of Facebook’s business that these papers afforded certainly isn’t pretty… 

US legal discovery appears to be the only reliable external force capable of extracting data from inside the bellow of the nation-sized beast. That’s a problem for democracies. 

So Facebook instructing an ‘oversight board’ of its own making to do anything other than smooth publicity bumps in the road, and pave the way for more Facebook business as usual, is like asking a Koch brothers funded ‘stink tank’ to be independent of fossil fuel interests. The OB is just Facebook’s latest crisis PR tool. More fool anyone who signs up to ink their name to its democratically void rubberstamp.

Dig into the detail of the charter and cracks in the claimed “independence” soon appear.

Aside from the obvious overriding existential points that the board only exists because Facebook exists, making it a dependent function of Facebook whose purpose is to enable its spawning parental system to continue operating; and that it’s funded and charged with chartered purpose by the very same blue-veined god it’s simultaneously supposed to be overseeing (quite the conflict of interest), the charter states that Facebook itself will choose the initial board members. Who will then choose the rest of the first cohort of members.

“To support the initial formation of the board, Facebook will select a group of cochairs. The co-chairs and Facebook will then jointly select candidates for the remainder of the board seats,” it writes in pale grey Facebookese with a tone set to ‘smooth reassurance’ — when the substance of what’s being said should really make you go ‘wtf, how is that even slightly independent?!’

Because the inaugural (Facebook-approved) member cohort will be responsible for the formative case selections — which means they’ll be laying down the foundational ‘case law’ that the board is also bound, per Facebook’s charter, to follow thereafter.

“For each decision, any prior board decisions will have precedential value and should be viewed as highly persuasive when the facts, applicable policies, or other factors are substantially similar,” runs an instructive section on the “basis of decision-making”.

The problem here hardly needs spelling out. This isn’t Facebook changing, this is more of the same ‘Facebook first’ ethos which has always driven its content moderation decisions — just now with a highly polished ‘overseen’ sheen.

This isn’t accountability either. It’s Facebook trying to protect its business from actual regulation by creating a blame-shifting firewall to shield its transparency-phobic execs from democratic (and moral) scrutiny. And indeed to shield Zuckerberg & his inner circle from future content scandals that might threaten to rock the throne, a la Cambridge Analytica.

(Judging by other events this week that mission may not be going so well… )

Given the lengths this company is going to to eschew democratic scrutiny — ducking and diving even as it weaves its own faux oversight structure to manage negative PR on its behalf (yep, more fakes!) — you really have to wonder what Facebook is trying to hide.

A moral vacuum the size of a black hole? Or perhaps it’s just trying to buy time to complete its corporate takeover of the democratic world order…

Because of course the Oversight Board can’t set actual Facebook policy. Don’t be ridiculous! It can merely issue policy recommendations — which Facebook can just choose to ignore.

So even if we imagine the OB running years in the future, when it might theoretically be possible its membership has drifted out of Facebook’s comfortable set-up “support” zone, the charter has baked in another firewall that lets Zuckerberg ignore any policy pressure he doesn’t like. Just, y’know, on the off-chance the board gets too independently minded. Truly, there’s nothing to see here.

Entities structured by corporate interests to role-play ‘neutral’ advice or ensure ‘transparent’ oversight — or indeed to promulgate self-interested propaganda dressed in the garb of intellectual expertise — are almost always a stacked trick.

This is why it’s preferable to live in a democracy. And be governed by democratically accountable institutions that are bound by legally enforcement standards of transparency. Though Facebook hopes you’ll be persuaded to vote for manipulation by corporate interest instead.

So while Facebook’s claim that the Oversight Board will operate “transparently” sure sound good it’s also entirely meaningless. These are not legal standards of transparency. Facebook is a business, not a democracy. There are no legal binds here. It’s self regulation. Ergo, a pantomime.

You can see why Facebook avoided actually calling the OB its ‘Supreme Court’; that would have been trolling a little too close to the bone.

Without legal standards of transparency (or indeed democratic accountability) being applied, there are endless opportunities for Facebook’s self interest to infiltrate the claimed separation between oversight board, oversight trust and the rest of its business; to shape and influence case selections, decisions and policy recommendations; and to seed and steer narrative-shaping discussion around hot button speech issues which could help move the angry chatter along — all under the carefully spun cover of ‘independent external oversight’.

No one should be fooled into thinking a Facebook-shaped and funded entity can meaningful hold Facebook to account on anything. Nor, in this case, when it’s been devised to absorb the flak on irreconcilable speech conflicts so Facebook doesn’t have to.

It’s highly doubtful that even a truly independent board cohort slotted into this Zuckerberg PR vehicle could meaningfully influence Facebook’s policy in a more humanitarian direction. Not while its business model is based on mass-scale attention harvesting and privacy-hostile people profiling. The board’s policy recommendations would have to demand a new business model. (To which we already know Facebook’s response: ‘LOL! No.’)

The Oversight Board is just the latest blame-shifting publicity exercise from a company with a user-base as big as a country that gifts it massive resource to throw at its ‘PR problem’ (as Facebook sees it); i.e. how to seem like a good corporate citizen whilst doing everything possible to evade democratic scrutiny and outrun the leash of government regulation. tl;dr: You can’t fix anything if you don’t believe there’s an underlying problem in the first place.

For an example of how the views of a few hand-picked independent experts can be channeled to further a particular corporate agenda look no further than the panel of outsiders Google assembled in Europe in 2014 in response to the European Court of Justice ‘right to be forgotten’ ruling — an unappealable legal decision that ran counter to its business interests.

Google used what it billed as an “advisory committee” of outsiders mostly as a publicity vehicle, holding a large number of public ‘hearings’ where it got to frame a debate and lobby loudly against the law. In such a context Google’s nakedly self-interested critique of EU privacy rights was lent a learned, regionally seasoned dressing of nuanced academic concern, thanks to the outsiders doing time on its platform.

Google also claimed the panel would steer its decision-making process on how to implement the ruling. And in their final report the committee ended up aligning with Google’s preference to only carry out search de-indexing at the European (rather than .com global) domain level. Their full report did contain some dissent. But Google’s preferred policy position won out. (And, yes, there were good people on that Google-devised panel.)

Facebook’s Oversight Board is another such self-interested tech giant stunt. One where Facebook gets to choose whether or not to outsource a few tricky content decisions while making a big show of seeming outward-looking, even as it works to shift and defuse public and political attention from its ongoing lack of democratic accountability.

What’s perhaps most egregious about this latest Facebook charade is it seems intended to shift attention off of the thousands of people Facebook pays to labor daily at the raw coal face of its content business. An outsourced army of voiceless workers who are tasked with moderating at high speed the very worst stuff that’s uploaded to Facebook — exposing themselves to psychological stress, emotional trauma and worse, per multiple media reports.

Why isn’t Facebook announcing a committee to provide that existing expert workforce with a public voice on where its content lines should lie, as well as the power to issue policy recommendations?

It’s impossible to imagine Facebook actively supporting Oversight Board members being selected from among the pool of content moderation contractors it already pays to stop humanity shutting its business down in sheer horror at what’s bubbling up the pipe.

On member qualifications, the Oversight Board charter states: “Members must have demonstrated experience at deliberating thoughtfully and as an open-minded contributor on a team; be skilled at making and explaining decisions based on a set of policies or standards; and have familiarity with matters relating to digital content and governance, including free expression, civic discourse, safety, privacy and technology.”

There’s surely not a Facebook moderator in the whole wide world who couldn’t already lay claim to that skill-set. So perhaps it’s no wonder the company’s ‘Oversight Board’ isn’t taking applications.



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Startups Weekly: Upfront Ventures bets on a bus service

Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy news pertaining to startups and venture capital. Before I jump into today’s topic, let’s catch up a bit. Last week, I profiled an e-commerce startup Part & Parcel. Before that, I wrote about Stripe’s grand plans.

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

Startup Spotlight: Landline

Some startups build space ships that will one day send us all to Mars, others put their time and energy into improving 350 year old infrastructure.

Landline, the operator of a bus network in the Midwest, is one of the latest companies to raise venture capital. The business has closed a $3.85 million round led by Los Angeles firm Upfront Ventures, with participation from Mucker Capital and Matchstick Ventures. The company is actually based out of LA, too, but has completed its initial launch in Minnesota, where there’s greater demand for short-term bus travel.

Landline isn’t just a few buses with startup branding. Founder and chief executive officer David Sunde tells TechCrunch a ride on Landline is booked through its partner airline Sun Country Airlines. A traveler pays Sun Country one fixed price to get them from the bus pick-up point to their final destination. The goal is to help those who live far distances from airports save money and to make the experience of busing more enjoyable.

“It’s all meant to be at the level of reliability that you would expect from an air carrier,” Sunde tells TechCrunch. “We don’t want people who get on the bus to be surprised or upset — we want it to be a seamless experience … The perception of bus travel in the U.S. is negative. A big part of our mission is to get people comfortable on buses again as a viable alternative to air travel in certain markets.”

For those of you wondering, have these people ever heard of Greyhound? Landline says they wont compete with Greyhound because of the more than 100-year-old transportation business’s focus on long-haul trips. Landline will specifically focus on connecting those in rural communities to airports, particularly regions where there aren’t already bus routes that conveniently access the airport. Can’t say I’m particularly bullish on this one but the startup is very early and transportation is a massive market ripe for disruption.

“Our vision is completely integrated multi-modal travel,” Sunde added.

GettyImages 470533010

IPO Update

WeWork has delayed its IPO following questions surrounding its corporate governance and the ultimate value of the company. The co-working business says it expects to go public by the end of the year. Airbnb, for its part, filed a press release this week confirming its plans to go public in 2020. We don’t know much about the company’s plans, but we wouldn’t be too surprised to see the home-sharing decacorn pursue a direct listing.

Postmates, the popular food delivery service, raised another $225 million at a valuation of $2.4 billion in a round led by the private equity firm GPI Capital this week. The financing brings Postmates’ total funding to nearly $1 billion. The company filed privately with the SEC for an IPO earlier this year. Sources familiar with the company’s exit plans say the business intends to publicly unveil its IPO prospectus this month.

To discuss the company’s journey to the public markets and the challenges ahead in the increasingly crowded food delivery space, Postmates co-founder and chief executive officer Bastian Lehmann will join us onstage at TechCrunch Disrupt on Friday October 4th. Don’t miss it.

VC Deals

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Learn from top VCs at TechCrunch Disrupt

A whole lot of VCs will be joining us at TechCrunch Disrupt.

We’ll have a16z general partners Chris Dixon, Angela Strange and Andrew Chen for insight into the firm’s latest activity. Seed investor Charles Hudson of Precursor Ventures and Redpoint Ventures general partner Annie Kadavy will show up to give founders tips on how to raise VC. Y Combinator’s Michael Seibel and Ali Rowghani will join us with advice on how to get accepted to their respected accelerator.

Plus, GV’s David Krane, Sequoia general partner Jess Lee, Floodgate’s Ann Miura-Ko, Aspect Ventures’ Theresia Gouw, Bessemer Venture Partners’  Tess Hatch, Forerunner Ventures’ Eurie Kim, Mithril Capital’s Ajay Royan and SOSV’s Arvind Gupta will be on deck to comment on the respective fields.

Disrupt SF runs October 2-4 at the Moscone Center in the heart of San Francisco. Passes are available here.

#EquityPod

This week, the lovely Alex Wilhelm and I welcomed Kleiner Perkins’ Mamoon Hamid, known for his investments in Slack, Figma, Cameo and more, to riff on upcoming IPOs and debate the scalability of D2C brands. Listen to the episode here or watch us on YouTube.

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



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Friday, September 20, 2019

Facebook has suspended ‘tens of thousands’ of apps suspected of hoarding data

Facebook has suspended “tens of thousands” of apps connected to its platform which it suspects may be collecting large amounts of user profile data.

That’s a sharp rise from the 400 apps flagged a year ago by the company’s investigation in the wake of Cambridge Analytica, a scandal that saw tens of millions of Facebook profiles scraped to help swing undecided voters in favor of the Trump campaign during the U.S. presidential election in 2016.

Facebook did not provide a more specific number in its blog post but said the apps were built by 400 developers.

Many of the apps had been banned for a number of reasons, like siphoning off Facebook user profile data or making data public without protecting their identities, or other violations of the company’s policies.

Despite the bans, the social media giant said it has “not confirmed” other instances of misusing user data beyond those about which it has already notified the public. Among those previously disclosed include South Korean analytics firm Rankwave, accused of abusing the developer platform and refusing an audit; and myPersonality, a personality quiz that collected data on more than four million users.

The action comes in the wake of the since-defunct Cambridge Analytica and other serious privacy and security breaches. Federal authorities and lawmakers have launched investigations and issued fines from everything from its Libra cryptocurrency project to how the company handles users’ privacy.

Facebook said its investigation will continue.



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Vianai emerges with $50M seed and a mission to simplify machine learning tech

You don’t see a startup get a $50 million seed round all that often, but such was the case with Vianai, an early-stage startup launched by Vishal Sikka, former Infosys managing director and SAP executive. The company launched recently with a big check and a vision to transform machine learning.

Just this week, the startup had a coming out party at Oracle Open World, where Sikka delivered one of the keynotes and demoed the product for attendees. Over the last couple of years, since he left Infosys, Sikka has been thinking about the impact of AI and machine learning on society and the way it is being delivered today. He didn’t much like what he saw.

It’s worth noting that Sikka got his PhD from Stanford with a specialty in AI in 1996, so this isn’t something that’s new to him. What’s changed, as he points out, is the growing compute power and increasing amounts of data, all fueling the current AI push inside business. What he saw when he began exploring how companies are implementing AI and machine learning today was a lot of complex tooling, which, in his view, was far more complex than it needed to be.

He saw dense Jupyter notebooks filled with code. He said that if you looked at a typical machine learning model, and stripped away all of the code, what you found was a series of mathematical expressions underlying the model. He had a vision of making that model-building more about the math, while building a highly visual data science platform from the ground up.

The company has been iterating on a solution over the last year with two core principles in mind: explorability and explainability, which involves interacting with the data and presenting it in a way that helps the user attain their goal faster than the current crop of model-building tools.

“It is about making the system reactive to what the user is doing, making it completely explorable, while making it possible for the developer to experiment with what’s happening in a way that is incredibly easy. To make it explainable means being able to go back and forth with the data and the model, using the model to understand the phenomenon that you’re trying to capture in the data,” Sikka told TechCrunch.

He says the tool isn’t just aimed at data scientists, it’s about business users and the data scientists sitting down together and iterating together to get the answers they are seeking, whether it’s finding a way to reduce user churn or discover fraud. These models do not live in a data science vacuum. They all have a business purpose, and he believes the only way to be successful with AI in the enterprise is to have both business users and data scientists sitting together at the same table working with the software to solve a specific problem, while taking advantage of one another’s expertise.

For Sikka, this means refining the actual problem you are trying to solve. “AI is about problem solving, but before you do the problem solving, there is also a [challenge around] finding and articulating a business problem that is relevant to businesses and that has a value to the organization,” he said.

He is very clear, that he isn’t looking to replace humans, but instead wants to use AI to augment human intelligence to solve actual human problems. He points out that this product is not automated machine learning (AutoML), which he considers a deeply flawed idea. “We are not here to automate the jobs of data science practitioners. We are here to augment them,” he said.

As for that massive seed round, Sikka knew it would take a big investment to build a vision like this, and with his reputation and connections, he felt it would be better to get one big investment up front, and he could concentrate on building the product and the company. He says that he was fortunate enough to have investors who believe in the vision, even though as he says, no early business plan survives the test of reality. He didn’t name specific investors, only referring to friends and wealthy and famous people and institutions. A company spokesperson reiterated they were not revealing a list of investors at this time.

For now, the company has a new product and plenty of money in the bank to get to profitability, which he states is his ultimate goal. Sikka could have taken a job running a large organization, but like many startup founders, he saw a problem, and he had an idea how to solve it. That was a challenge he couldn’t resist pursuing.



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Alchemist Accelerator is launching a European program

Enterprise-focused startup accelerator Alchemist is expanding its footprint this morning with the launch of an initiative focused on European startups.

While Alchemist was happy to accept European companies into their U.S. program before — they tell me they’ve had about 25 European startups go through Alchemist already — it hasn’t been a focus.

With the aptly named Alchemist Europe, Alchemist will be opening an office in Munich and bringing in its first Europe-focused cohort. Alchemist expects this first class of companies to debut with its first Europe Demo Day sometime in early 2020.

Like Alchemist U.S., Alchemist Europe will focus on enterprise companies and teams that make their money from corporations. More specifically, Alchemist says in its announcement of the program that the European base will specialize in “Industry 4.0, robotics, mobility, power generation and distribution, industrial artificial intelligence and virtual reality.”

Ethan Prater, formerly the VP of Product for Castlight Health, will be heading up the Europe division as its managing director.

So why expand now? Alchemist U.S. managing director Ravi Belani tells me it’s because they’ve now built out their network and internal software to sufficiently support European companies “with the full experience of the U.S. program, remotely.”

And it helps that they’ve found a pretty significant partner in the region. Alchemist is building out this European initiative in a partnership with Next47 — the VC/investing arm of European mega company Siemens, which also happens to be headquartered in Munich.

I’m told Next47 has committed $2.5 million to Alchemist as part of the deal, and has reserved an additional $2.5 million for potential further investment.

Alchemist Accelerator in the U.S., meanwhile, is just about to wrap up its latest class. It’ll host its 22nd demo day today, with 23 companies launching in all. They’ll have a live stream of the event here, with presentations beginning at 3 PM Pacific.



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Amazon Prime adds free mobile game content to its perks, starting with PUBG Mobile

{rss:content:encoded} Amazon Prime adds free mobile game content to its perks, starting with PUBG Mobile https://ift.tt/2M4dEQD https://ift.tt/32TEfGT September 20, 2019 at 09:01PM

Amazon today is introducing a new perk for Prime members: free mobile game content. The company, which already offers Twitch Prime benefits through its subsidiary, will now give its Prime members various in-game items for PUBG Mobile, the popular battle royale title from Tencent.

The items launching today include an exclusive Infiltrator Mask, Infiltrator Jacket, Infiltrator Pants, and Infiltrator Shoes to complete a Prime-exclusive set, plus the brand-new Blood Oath – Karabiner 98K and Black Magma Parachute.

These exclusive game items aren’t just a one-off as part of a special deal between the retailer and Tencent, however.

Amazon says it will roll out new mobile gaming content on an ongoing basis, going forward, as part of the Prime membership program.

Upcoming partners will include the likes of EA, Moonton, Netmarble, Wargaming Mobile, and others, Amazon tells us.

“Now, no matter what platform you play on—whether console, PC, or mobile—there are Prime game benefits for you,” said Ethan Evans, VP, Twitch Prime, in a statement. “We’re starting with exclusive content for PUBG Mobile, one of the biggest mobile games in the world, and in the coming months, we’ll roll out benefits for some of the most popular mobile games across many favorite genres.”

Amazon’s Twitch already offers a Prime benefit called Twitch Prime which offers a range of perks, like bonuses like channel subscriptions, access to select games and in-game loot, exclusive emoticons, Prime chat badges and more. And as of yesterday, it now includes the option to share select Twitch Prime loot with other non-Prime members on Twitch. However, its focus is more on PC and console gaming, not mobile.

This isn’t the first time Amazon has pitched gaming perks to its Prime members. Several years ago, it ran a program called “Underground Actually Free” which offered customers free versions of Android apps that would typically cost money. That program, however, was more about luring Prime members to Amazon’s Fire tablets. It shut down in 2017.

Today’s mobile gaming perks instead seem to be just a better way for Amazon to leverage the relationships Twitch already has with PC and console game makers who have cross-platform titles that extend to mobile.

To claim the new perks, Prime members can visit www.amazon.com/pubgm.

How Kobalt is betting on music’s middle class and DIY stars

Streaming services have made music ubiquitous, driving more exploration by consumers who don’t have to pay for each song or album individually. Musicians are correspondingly able to find their own niche of fans scattered around the world.

(This is the third installment of our EC-1 series on Kobalt Music Group and changes in the music industry. Read Part I and Part II.)

As Spotify gained rapid adoption in his native Sweden in 2006, class="crunchbase-link" href="https://ift.tt/2V6RCRn" target="_blank" data-type="organization" data-entity="kobalt-music-group">Kobalt’s founder & CEO Willard Ahdritz predicted music streaming and the rise of social media would increasingly undercut the gatekeeping power of the major label groups and realign the market to center more on a vast landscape of niche musicians than a handful of traditional superstars.

Both of these predictions have proven directionally true. The question is to what extent and how are industry players actually realigning as a result?

What musicians need in addition to the administrative collection of their royalties (explained in Part II) is a menu of creative services they can tap for support. Kobalt’s AWAL and Kobalt Music Publishing divisions provide such services to recording artists and songwriters, respectively, and do so on purely a services basis (getting paid a commission but not taking ownership of copyrights like traditional labels and publishers do).

Niche middle class vs. Global superstars

GettyImages 124360271

Image via Getty Images / rolfo eclaire

The whole music industry is growing substantially due to streaming music’s mainstream penetration in wealthier countries and increased penetration in emerging markets.

As the overall pie is growing, the non-superstar segment of the market is indeed growing faster than the superstar segment, taking over a larger portion of industry royalties.

According to data from BuzzAngle, the top 500 songs in the US in 2018 accounted for 10% of on-demand audio streams — a dramatic decline in market share compared to 2017 when the top 500 songs accounted for 14% of streams. Stepping back, the top 50,000 songs made up 73.2% of all US streams in 2017 but that declined to 70.5% in 2018.



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At TechCrunch Disrupt, insights into key trends in venture capital

At TechCrunch Disrupt, the original tech startup conference, venture capitalists remain amongst the premier guests.

VCs are responsible for helping startups — the focus of the three-day event — get off the ground and as such, they are often the most familiar with trends in the startup ecosystem, ready to deliver insights, anecdotes and advice to our audience of entrepreneurs, investors, operators, managers and more.

In the first half of 2019, VCs spent $66 billion purchasing equity in promising upstarts, according to the latest data from PitchBook. At that pace, VC spending could surpass $100 billion for the second year in a row. We plan to welcome a slew of investors to TechCrunch Disrupt to discuss this major feat and the investing trends that have paved the way for recording funding.

Mega-funds and the promise of unicorn initial public offerings continue to drive investment. SoftBank, of course, began raising its second Vision Fund this year, a vehicle expected to exceed $100 billion. Meanwhile, more traditional VC outfits revisited limited partners to stay competitive with the Japanese telecom giant. Andreessen Horowitz, for example, collected $2.75 billion for two new funds earlier this year. We’ll have a16z general partners Chris Dixon, Angela Strange and Andrew Chen at Disrupt for insight into the firm’s latest activity.

At the early-stage, the fight for seed deals continued, with larger funds moving downstream to muscle their way into seed and Series A financings. Pre-seed has risen to prominence, with new funds from Afore Capital and Bee Partners helping to legitimize the stage. Bolstering the early-stage further, Y Combinator admitted more than 400 companies across its two most recent batches,

We’ll welcome pre-seed and seed investor Charles Hudson of Precursor Ventures and Redpoint Ventures general partner Annie Kadavy to give founders tips on how to raise VC. Plus, Y Combinator CEO Michael Seibel and Ali Rowghani, the CEO of YC’s Continuity Fund, which invests in and advises growth-stage startups, will join us on the Disrupt Extra Crunch stage ready with tips on how to get accepted to the respected accelerator.

Moreover, activity in high-growth sectors, particularly enterprise SaaS, has permitted a series of outsized rounds across all stages of financing. Speaking on this trend, we’ll have AppDynamics founder and Unusual Ventures co-founder Jyoti Bansal and Battery Ventures general partner Neeraj Agrawal in conversation with TechCrunch’s enterprise reporter Ron Miller.

We would be remiss not to analyze activity on Wall Street in 2019, too. As top venture funds refueled with new capital, Silicon Valley’s favorite unicorns completed highly-anticipated IPOs, a critical step towards bringing a much needed bout of liquidity to their investors. Uber, Lyft, Pinterest, Zoom, PagerDuty, Slack and several others went public this year and other well-financed companies, including Peloton, Postmates and WeWork have completed paperwork for upcoming public listings. To detail this year’s venture activity and IPO extravaganza, David Krane, CEO and managing partner of Uber and Slack investor GV will be on deck, as will Sequoia general partner Jess Lee, Floodgate’s Ann Miura-Ko and Aspect Ventures’ Theresia Gouw.

There’s more where that came from. In addition to the VCs already named, Disrupt attendees can expect to hear from Bessemer Venture Partners’ Tess Hatch, who will provide her expertise on the growing “space economy.” Forerunner Ventures’ Eurie Kim will give the Extra Crunch Stage audience tips on building a subscription product, Mithril Capital’s Ajay Royan will explore opportunities in the medical robotics field, SOSV’s Arvind Gupta will dive deep into the cutting edge world of health tech and more.

Disrupt SF runs October 2 – 4 at the Moscone Center in the heart of San Francisco. Passes are available here.



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Tonic launches a personalized news reader that respects user privacy

{rss:content:encoded} Tonic launches a personalized news reader that respects user privacy https://ift.tt/2LFJdBC https://ift.tt/30kfNSx September 20, 2019 at 06:10PM

Personalization technology can lead to better experiences as it allows apps to customize their content for each individual user. But it can also chip away at user privacy. A company called Canopy wants to change that. It has developed a personalization engine that works without requiring users to log in or even provide an email. Instead, it uses a combination of on-device machine learning and differential privacy to offer a personalized experience to an app’s users. Now it’s demonstrating how this works with the launch of the news reader app, Tonic.

The new app is designed to be completely private, while also learning what you like over time, in order to offer a customized experience. But unlike other personalization engines, all the raw interaction and behavioral data stays on your own device. That means the company itself never see it, nor does any content provider or partner it works with, it says.

As Canopy explains:

What we instead send over an encrypted connection to our server is a differentially private version of your personal interaction and behavior model. The local model of you that goes to Canopy never has a direct connection to the things you’ve interacted with, but instead represents an aggregate set of preferences of people like you. It’s a crucial difference for our approach: even in the worst case of the encryption failing, or our servers being hacked, no one could ever do anything with the private models because they do not represent any individual.

Another big differentiator is that Tonic puts you in control over your own personalization settings. This is not typical. If you’ve ever used an app powered by personalization technology, there’s probably been a point where you were recommended a song, video, or a news article, for example, that seemed to be entirely wrong and not representative of something you’d actually like. But you may have been at a loss as to why it was recommended, because most apps don’t detail this sort of information.

Tonic, on the other hand, lets you view, change and even reset your personalization settings whenever you want.

tonic app phones

While Tonic is mainly meant to demonstrate of its engine in action — Canopy’s larger goal is to license the technology — the app itself has several other features that make it worth a look.

The company employs a human editorial team to help select the app’s news content, to ensure that it’s not offering a bunch of noise, like clickbait or “hate-reads.” It also avoids breaking news and “hot takes,” it says, as it’s not designed to be an app you use to track the latest news with urgency.

Instead, Tonic pulls from a diversity of sources with its core focus on bringing you a curated, personalized selection of daily reads to inform and inspire. And in the spirit of digital well-being, it’s a finite list of articles — not an endless news feed.

“We made Tonic because we were tired of having to give up our digital selves to get great recommendations, and because we wanted to build an alternative to endless feeds optimized for maximum engagement, breaking news, and outrage,” the company explains in its announcement of the app’s launch.

The technology’s arrival comes at a time when big tech is being investigated for carelessness with user data, and there’s increased attention on user privacy in general. Apple, for example, has made its respect for user privacy a key selling point for its hardware and software.

The New York-based startup was founded by Brian Whitman, formerly the founder of The Echo Nest and a former principal scientist at Spotify. The team also includes several ex-Spotify, Instagram, Google and New York Times execs. It’s seed-funded by Matrix Partners, and other investors from Spotify, WeWork, Splice, MIT Media Lab, Keybase, and more to the tune of $4.5 million dollars.

Lookiero closes $19M led by MMC Ventures to be the Stitch Fix for Europe

Lookiero, the online personal shopping service for clothes and accessories, has closed a $19 million funding round led by London-based VC MMC Ventures with support from existing investor All Iron Ventures, and new investors Bonsai Partners, 10x and Santander Smart. The company will use the backing to expand in its main markets of Spain, France and the UK.

The startup applies algorithms to a database of personal stylists and customer profiles to thus provide a personalized online shopping experience to its customers. It then delivers a selection of five pieces of clothing or accessories curated by a personal shopper to fit the customer’s individual size, style, and preferences. Customers then decide which items to keep or return (at no additional cost), allowing Lookiero to learn more about the customer’s tase before starting the whole process again.

By generating look-a-like profiles and analyzing previous customer interactions with each item, Lookiero says it can predict how likely a user is going to keep a certain item from a range of more than 150 European brands from a warehousing system that will ship more than 3 million items of clothing this year to seven European countries.

It’s not unlike the well—worn Birchbox model. Lookiero’s main competitor is Stitch Fix (US), which has upwards of $1.5bn in annual revenues and IPO’d November 2017.

Founded in 2015 by Spanish entrepreneur Oier Urrutia, the company says it now has over 1 million registered users and has grown revenue by over 200% from 2017 to 2018.

In a statement Urrutia said: “This investment round provides us with the necessary capital to further increase the accuracy of our technology, which is really exciting. It will allow us to offer the best possible experience for our users and to continue expanding across Europe.”

Simon Menashy, Partner, MMC Ventures, said: “The migration of fashion brands online has improved consumers’ access to clothing, and there is now an almost overwhelming amount of choice. At the same time, it can still be really hard to find exactly what is right for you, especially with high street retail stores in decline. Lookiero provides the best of both worlds, giving every customer a hand-picked selection from their personal stylist.”

Ander Michelena, co-founding partner of All Iron Ventures, said: “Even if what Oier and his team have achieved to date is remarkable, we believe that Lookiero still has great potential to continue expanding internationally and to become a player of reference in a market segment where there is still a lot to do in terms of innovation and user satisfaction”.



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Clutter acquires The Storage Fox for $152M to add self-storage to its on-demand platform

The world of on-demand storage has seen some ups and downs, with some of the biggest hopefuls pivoting into new areas, some as unrelated as cryptocurrency, in the search for better product-market fit. One that found its groove early on, however, is today announcing an acquisition to expand its existing business into a new market category. Clutter, the on-demand removals and storage company backed by SoftBank, is today announcing that it has acquired The Storage Fox, a startup that will spearhead Clutter’s expansion in to self-storage services in urban locations, starting first in the New York metro area where The Storage Fox is currently active.

The deal is valued at $152 million, Clutter said. Ari Mir, Clutter’s co-founder and CEO, added in an interview that  Clutter did not need to raise any extra funding to finance this acquisition, but said his company is likely to be taking on more financing in the future for growth.

To date, Clutter has raised $310 million, according to PitchBook, including a $200 million round earlier this year led by SoftBank that valued the company at $600 million post-money. Future financing is likely to come in the form of debt to acquire property, as well as equity to expand the business’s platform, hiring and more. It’s currently active in 1,000 cities and towns across the US and the plan will be to stay domestic until it has wider penetration, before exploring how to grow internationally. The deal will bring the total amount of space that Clutter leases and owns up to two million square feet.

“Expanding into self-storage is something we have been discussing since Clutter’s Series A pitch to Sequoia and we are excited to see it come to fruition,” said Omar Hamoui, partner at Sequoia Capital, in a statement. “The acquisition reinforces Clutter’s market leadership and expands Clutter services by offering a better experience for customers who need self-storage or on-demand storage.”

(Notably, too, is that Clutter had to actively bid for this business: “Portfolios like that of The Storage Fox are extremely rare, and this acquisition signals that Clutter is uniquely positioned to take on and succeed in the self-storage industry,” said Eliav Dan, Head of West Coast Real Estate Finance at Barclays, which acted as Clutter’s exclusive financial advisor, in a statement. “Clutter competed with multiple self-storage REITs throughout the bidding process to win the deal — a testament to the strength of the company’s management team and its ability to execute on an innovative business model.”)

Up to now, Clutter business has focused on extending the on-demand model — which has become a cornerstone for a huge wave of e-commerce startups that are tapping into new innovations for managing logistics, the rise of the gig-economy, the proliferation of smartphones, and consumer tastes for instant gratification — to the messy business of helping people move and store their worldly possessions, from which Clutter makes revenues by charging service fees.

Customers might typically be urban dwellers — for example moving to smaller digs or simply looking for a way to, yes, de-Clutter — but the storage centers themselves tend to be far outside city centers. On top of this, Clutter has largely operated on a long-term lease model with the facilities that it uses.

In that regard, this acquisition will be giving the company a couple of interesting new possessions of its own, to tap the self-storage market, estimated to be worth $40 billion annually.

The Storage Fox’s facilities, like other self-storage businesses, are located in areas that are much closer to urban centers, since the model is predicated more on people being able to dip in and out of their storage units quickly and potentially very regularly. In its case, its facilities today are in Yonkers, White Plains, Queens and Brooklyn.

It will also give Clutter a trove of real estate that it will now own: The Storage Fox didn’t appear to raise any traditional VC funding, but it did have large finance agreements in place in order to buy property. That is a pattern that Clutter is likely to continue, Mir said.

Now that there will be more accessible space on Clutter’s platform that it actually owns, it will also give the company a point of entry into a new potential range of business services alongside the self-storage. Could that extend into something like office space, potentially pitting Clutter against one of its portfolio neighbors, WeWork? Mir declined to answer specifically but we’ve seen some outlier cases — such as this guy who lived out of his storage unit — that, while not exactly okay for a number of reasons, does underscore that there is a lot of potential there.

“There are over 52,000 self-storage facilities in the US alone,” Mir said. “If you take all that and add it up, there are more square feet in those storage spaces than there are in McDonald’s and Starbucks in the US, combined. At the same time, inside of cities, we’re running out of space. So our vision is to apply all the technology that we’ve built in house to increase the value that these self-storage facilities provide across society.”

Clutter has already made some moves beyond simple storage in its existing business: it’s already actively advertising the option to rent, sell, donate and dispose of your items if you choose — although it seems that these four services are not yet actively live. Earlier this year, it acquired the storage business of Omni, which itself is currently focusing on rentals.

Storage over all has not been an easy area to tackle for a lot of reasons: on top of the usual issues of needing to ensure that the contractors — the face and engine of your business — are responsible and good at their jobs, the cargo can be unexpectedly large or fragile, and the movement of it might be tied up in all kinds of backstories that make getting from A to B and eventually back to the owner again very complicated.

Mir concedes that the customer satisfaction aspect has been challenging: it’s one of those areas that people are quick to publicly complain when something has gone awry. He also insists that its ratings and Clutter’s efforts are generally improving, and frankly it’s great to hear him be honest about this and not deny that criticism is a challenge and that the company is always working to make this better.



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