Author: Ben Debski

Alibaba sets up shop in the physical realm

Posted on by Ben Debski

After dominating the online shopping world, internet giants Alibaba and Amazon are getting ready to compete in the traditional retail zone with physical storefronts. Alibaba has signed a deal with Shanghai Bailian Group to modernise the supermarket chain’s logistics, in a move that is similar to recent efforts from Amazon.

As reported by Reuters, Alibaba’s new deal will see it overhaul the experience for Bailian’s customers using data analytics from its own online storefront. Boasting over 4,700 locations in China, Bailian is one of the country’s largest department stores and supermarket chains, and a perfect test case for Alibaba’s ability to manage everything from logistics to customer relations.

While investors met the announcement warmly, analysts have cautioned that Alibaba’s systems may take several years to have a positive effect on sales or revenue.

Alibaba’s new deal will see it overhaul the experience for Bailian’s customers using data analytics from its own online storefront

This is not the only move Alibaba has made towards developing a physical retail presence. Bloomberg reported that it is also leading a bid to purchase the Intime Retail Group department store chain, a Hong Kong listed company it has previously invested in.

It’s a move that mirrors Amazon’s trajectory. In 2015 the company opened its first Amazon Books store in Seattle, with plans in motion to open a New York store later this year. The stock the bookstore offers is based on customer data from Amazon’s online storefront, with most being rated at least four out of five by customer reviews.

More ambitious is the company’s cashier-less store Amazon Go, which uses a range of sensors to automatically charge customers for whatever they walk out with.

The moves suggest that both Alibaba and Amazon are concerned about their prospects for future growth. While undoubtedly dominant forces in the online space, both companies have seen an opportunity to modernise the traditional brick-and-mortar experience with the same data analysis techniques they have perfected for use online.

Boring Elon Musk digs deep

Posted on by Ben Debski

After setting his sights on reimagining the world’s energy grid, overhauling transportation systems and mastering space travel, Elon Musk is now targeting urban congestion. With an as-yet unnamed company, under the working title ‘the Boring Company’, Musk is beginning to develop the machinery and systems needed to construct networks of underground tunnels to eliminate traffic jams.

In a feature with Bloomberg, Musk made clear that what initially appeared to be a throwaway joke would actually be the beginnings of his newest business. On December 17, Musk tweeted: “Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging.” He later tweeted that he would create ‘the Boring Company’ and that he was “…actually going to do this”.

Few took the initial string of tweets seriously, but Musk has now revealed that he has dug a 15ft deep hole in a car park near SpaceX’s headquarters and purchased a boring machine. While the project does not have any full-time employees working on it, SpaceX engineer Steve Davis has been appointed its lead. While still in its very early phases, the company is definitely real.

Musk has revealed that he has dug a 15ft hole in a car park

The rationale behind Musk’s project is that tunnels would be a solution to urban congestion. Currently, road networks are two-dimensional, but sweeping networks of tunnels would allow for a far greater volume of simultaneous users. He also sees the project as being similar to SpaceX in the sense that he is creating more efficient and cheaper alternatives in long-stagnant industries. The tunnelling machines used today are not much different to those used 50 years ago. Speaking to Bloomberg, Musk said that tunnelling has been on his radar for years.

Little mention, however, has been made of the significant safety concerns such a plan would raise. Much like fracking, drilling numerous tunnels into the earth at various levels would severely weaken the ground’s structural integrity, risking devastating collapses. What’s more, with urban air quality now known to be the cause of millions of deaths each year – even affecting people inside cars – it will be hard to sell the idea of spending even more time in poorly ventilated surroundings.

In any case, Musk has made a habit of re-energising old industries with a dose of innovation. With Tesla, he has shaken up both the automotive industry and electrical grids, and SpaceX looks set to substantially reduce the cost of space travel. But, despite his successes so far, Tesla and SpaceX still seem to be a long way off reaching his ambitious goals of grid-scale energy storage and Mars colonisation. Still, like Tesla and SpaceX, the Boring Company has a wealth of potential.

Atomico raises $765m to invest in European tech start-ups

Posted on by Ben Debski

Venture capital firm Atomico has closed a $765m tech fund, the largest of its kind in Europe. Atomico’s fourth fund, named Atomico IV, will enable the firm to invest in burgeoning European technology startups, and marks a vote of confidence in the region’s tech industry following last year’s monumental Brexit vote.

The UK-based firm, established by Skype co-founder Niklas Zennström in 2006, has invested in over 60 different tech startups since its inception. Of these 60 companies, seven have grown to be worth more than $1bn, including video game developer Rovio Entertainment, which produced the gaming phenomenon Angry Birds, and weather data company The Climate Corporation, which was bought by Monsanto for $1.1bn in 2013. Its biggest success story, however, has been the mobile gaming developer Supercell, which was recently acquired by China’s Tencent for $8.6bn.

Despite Atomico’s previous investment drives, European start-ups have long struggled to compete with their US and Asian counterparts, largely due to a lack of capital. While the continent certainly has the academic institutions, tech facilities and professional expertise to produce promising startups, a lack of funding inhibits European companies from growing into tech giants, the likes of which Silicon Valley so consistently produces. Due to this funding gap, many of the region’s brightest tech talents are bought out rather than waiting for their own stock market floatation.

European start-ups have struggled to compete with US and Asian counterparts, due to a lack of capital

In addition to this lack of capital, last year’s Brexit vote further stoked fears over the long-term outlook for the European start-up industry. While Brexit negotiations are still ongoing, many industry experts believe that the UK’s withdrawal from the EU would make it harder for venture capitalists to raise funds. Atomico’s success in securing funding, however, appears to alleviate some of these concerns, and marks a growing level of investor support for Europe’s startups.

“Raising a fund of this size is testament to the growing confidence in European tech – which we have championed from the start – and our unique approach to partnering with founders to help them build successful companies and create value”, a recent Atomico statement read. “When we invest in a company, we give everything we have, not just capital.”

Using its Atomico IV fund, the venture capital firm is expected to invest in approximately 25 different European startups over the next two to three years, and will be backing tech companies at various different stages.

Nikon announces ‘extraordinary loss’ and kills off planned mirrorless line

Posted on by Ben Debski

Japanese camera manufacturer Nikon has seen its stock price plummet 15 percent, following what the company cryptically termed a “notice of recognition of extraordinary loss”. The announcement compounds fears initiated in November last year, when the company announced a restructuring programme that, among other things, would see a shift in focus from revenue to profit maximisation, and the loss of 1,000 jobs through a ‘voluntary retirement’ scheme.

According to PetaPixel, the last nine months of 2016 saw Nikon lose around $260m, both as part of the restructuring process and from slow sales in the semiconductor lithography department.

After a decade of steady growth, Nikon faces a challenge to remain relevant

Nikon is the world’s second-largest manufacturer of professional cameras, behind fellow Japanese firm Canon. Together, the two companies made the shift from analogue to digital in the 2000s much more smoothly than competitors such as Minolta, Olympus, Fuji and Leica. Pioneering the digital single-lens reflex camera (DSLR), Nikon and Canon made digital cameras a viable choice for high-end and professional photography, a success that was not widely predicted and nearly led to the extinction of film photography.

After a decade of steady growth, Nikon now faces its own challenge to remain relevant. With smartphone cameras rapidly increasing in technical ability, and digital mirrorless cameras offering equal (if not superior) performance to DSLRs, the company needs to innovate quickly in order to keep its grip on the professional and high-end consumer market. To this end, Nikon last year announced the DL series of cameras, designed as top-of-the-range compact cameras to compete with the likes of Fuji and Sony, whose lightweight mirrorless models are storming the market.

Sadly, alongside the recent extraordinary loss announcement, Nikon has also announced the cancellation of the DL line. This is particularly significant, as the company’s main rival Canon has just revealed the release date for the EOS M6, its own premium compact camera. With Nikon now unable to compete at the top of the mirrorless/compact camera market, Canon is likely to extend its lead in the industry, and Nikon may even be overtaken by pluckier rivals.

However, investors shouldn’t panic just yet. For the financial year 2015-16, Nikon reported an operating income of $320.6m and total assets of $8.2bn. For the moment, at least, one of the legends of the 20th century photographic revolution isn’t going anywhere.

Facebook ups its game with new video app and features

Posted on by Ben Debski

On February 14, Facebook announced its new standalone video app, which it has pegged as “a new way to enjoy Facebook videos on a bigger screen”. The app will be rolled out “soon” to Apple TV, Samsung Smart TV and Amazon Fire TV app stores, with more platforms expected to follow.

The new app is an extension of the capabilities introduced by the social media giant in 2016, whereby users could begin streaming videos from Facebook directly to their televisions. Through the new platform, users will be able to watch videos shared by friends or pages, those that are trending, and others recommended based on previous viewing behaviour. As detailed in Facebook’s press release, users can also save videos to watch or re-watch at a later date.

Along with the TV app, Facebook unveiled new features that will improve videos watched on the social media platform. Until now, videos that appeared in a user’s feed played silently unless tapped for sound. The recent press release, however, argued that, given how many videos consumers now watch on their mobile devices, people have come to expect sound automatically. In response, Facebook is rolling out a new feature, which allows sound to fade in and out from videos as a user scrolls up and down. Changes have also been made to vertical videos, so as to improve quality and user experience on mobile devices.

Again, in line with user behaviour, Facebook will allow people to continue watching a video as they scroll through their news feed by minimising it to a picture-in-picture view. What’s more, consumers using Android devices can continue playing a video even after exiting the Facebook app and while doing something else on the same device.

If successful, Facebook could capture some of YouTube’s massive global audience

“The goal that we have for the product experience is to make it so that when people want to watch videos or want to keep up to date with what’s going on with their favourite show, or what’s going on with a public figure that they want to follow, that they can come to Facebook and go to a place knowing that that’s going to show them all the content that they’re interested in”, said CEO Mark Zuckerberg, following Facebook’s Q4 earnings report.

As indicated by the announcement and Zuckerberg’s statement, Facebook is working to turn the platform into a place where individuals can create and share videos easily and quickly. If successful, Facebook could capture some of YouTube’s massive global audience. Interestingly, this could be just the first step on a longer path; higher quality and more usable features could even allow Facebook to compete with the likes of Netflix were it to begin producing its own content and programmes. Given the nature of the platform, perhaps reality shows with Facebook users will even be considered; an extension of the type of content produced by leading users on video app Vine.

What’s significant about Facebook’s latest updates and upcoming app is the company’s deftness in understanding what consumers want, and its ability to respond quickly to new trends. As seen by the demise of Yahoo, having a great platform that is hugely popular is not enough to stay in the rapidly changing tech game in the long term; continuous improvement is essential to avoid falling into irrelevance.

Amazon launches innovative virtual conference service Chime

Posted on by Ben Debski

Late on February 13, Amazon Web Services (AWS) announced the launch of its latest business offering, Amazon Chime, a cloud-based service that “makes meetings easier and more efficient than ever before”. Through Amazon Chime, customers can have virtual meetings, make voice calls through VoIP, send video messages, or participate in web conferences from their mobile device or desktop.

Available on Windows and MacOS, as well as Android and iOS devices, Amazon Chime enters into direct competition with Microsoft’s Skype for Business. Other rivals within the unified communications arena include Cisco Systems’ WebEx, Google Hangouts and LogMeIn’s GoToMeeting.

Prices start with a basic package at $2.50 per month, rising to $15 for the highest tier service, which includes video and screen sharing features. Though a free service is also available, it is limited to video calls between just two users.

Chime could very well leapfrog established players in the unified communications industry

According to a press release published on AWS’ website, the service does not require users to enter a long pin when joining a meeting, while the recurrent issue of background noise is also eliminated through a muting option. When a user wishes to start a virtual meeting, all participants are called and can join at the simple click of a button. A visual roster of attendees also removes the frequent problem of not knowing when someone has been cut off.

AWS boasts that its new service features high-quality video and audio, as well as a reliable connection. “Amazon Chime takes frustration out of meetings”, the press release claimed. Further, with no management or ongoing maintenance fees, and at around a third of the cost of traditional service providers, Chime could very well leapfrog established players in the unified communications industry.

Indeed, disrupting established industries has become a norm for Amazon. From its online shopping platform to its Kindle e-reader, Amazon’s use of razor thin margins, even when offering the best platform or technology on any given market, have set the company apart from even the most established competitors. Chime is but the latest example of the tech giant’s incredibly successful model, which may see rivals scramble, but ultimately works in favour of the consumer.

Intel reveals $7bn investment for Arizona factory in Oval Office

Posted on by Ben Debski

Standing in the Oval Office, beside its latest occupant, Intel CEO Brian Krzanich announced that his company will invest $7bn into a new semiconductor chip factory in Chandler, Arizona. The pledge, which was made on February 8, will see construction of Fab 42 resume, six years after it first began.

Despite being delayed indefinitely by former CEO Paul Otellini, Krzanich has reignited the Fab 42 project, promising that “this factory will produce the most powerful computer chips on the planet”. The factory will use the highly advanced seven nanometre manufacturing process to produce microprocessors that “can power data centres and hundreds of millions of smart and connected devices worldwide”, according to a press release on the company’s website.

Fab 42 is expected to create over 10,000 permanent jobs in the Arizona area in support of the factory, around 3,000 of which will be “high tech, high paid jobs”, employed by Intel directly.

Fab 42 is expected to create over 10,000 permanent jobs in the Arizona area in support of the factory

Krzanich praised Trump during the press release, and thanked him for the opportunity. “It’s really in support of the tax and regulatory policies that we see the President pushing forward that make it advantageous to do manufacturing in the US”, he said. Trump, in turn, predictably celebrated the news with a tweet using his favourite #AmericaFirst tag.

The announcement has left some questioning Krzanich’s move, not because of the investment itself, but due to Trump’s suggested involvement in the plans, despite having little to do with them in official terms. Speculation was fuelled due to Krzanich’s decision to announce the news in the Oval Office beside Trump in a clear PR photo-op, as opposed to the more typical press conference in Silicon Valley.

During the press conference, long-standing Trump supporter Krzanich spoke of Intel’s leading role in US manufacturing, a recurrent theme that defined the President’s campaign trail. “We’re consistently one of the top five exporters in the country and one of the top two R&D spenders in the US – and we’ve been able to do that, even while the regulatory and tax policies have disadvantaged us in the past relative to the competition we have across the globe.”

His personal politics aside, Krzanich has played his hand well as far as Intel is concerned, supporting the ultimately victorious candidate and earning a favourable tax and regulatory environment in return.

Volkswagen powers up new electric vehicle unit with $2bn investment

Posted on by Ben Debski

The revelation in September 2015 that Volkswagen cheated on emissions tests culminated in a complex and expensive settlement with the US Environmental Protection Agency. A key part of the agreement dictated that Volkswagen must spend $2bn on the support of zero-emissions vehicles in the US, leading the company to launch a new subsidiary to oversee the spending. The new company, named Electrify America, is to invest in a variety of infrastructure projects aimed at encouraging the uptake of electronic vehicles. According to the company’s mission statement: “[The] investment will enable millions of Americans to discover the benefits of electric driving.”

The unit has announced a three pronged plan for the $2bn investment, through which it will focus on charging infrastructure around the US, improving awareness of electric vehicles and launching a Green City initiative in a “yet-to-be-named California municipality”.

In order to boost charging infrastructure, the company will “build a nationwide network of workplace, community, and highway chargers that are convenient and reliable”. More specifically, it will install chargers locally in approximately 15 metro areas, focusing in particular on areas with highly trafficked cross-country highways.

Electrify America is to invest in a variety of projects aimed at encouraging uptake of electronic vehicles

The second prong of the plan is to promote the benefits of electric mobility in an effort to demonstrate that “going electric is possible today”. The effort will include ride and drives, multi-channel advertising, a new website, promotion through social media, and educational programmes.

The plan for the final channel of investment in the “green city initiative” remains vague at this time. However, the stated aim is to pilot future concepts of sustainable mobility, such as a zero-emissions shuttle service, car-sharing programme, or transit application.

Mark McNabb, Volkswagen Group of America COO is to take the helm of the new unit as CEO. He will report to Francisco Javier Garcia Sanz – management board member of the Volkswagen Group – who commented that he has “every confidence in [McNabb’s] ability to lead Electrify America in its mission to power electric mobility from coast to coast”.

Vizio caught spying on customers

Posted on by Ben Debski

The feeling of being watched in your own home might not be mere paranoia. Smart TV maker Vizio has been caught spying on its users and will pay $2.2m to settle a case against it. Not only were Vizio smart TVs tracking users’ viewing habits without permission, but the company was also selling this information to third parties.

As reported by Ars Technica, a complaint filed by the US Federal Trade Commission stated that Vizio smart TVs contained automated content recognition (ACR) software that captured detailed information about what was being viewed on-screen, down to a second-by-second basis. This, along with other personal information, was transmitted to Vizio-operated servers and then sold to third-party organisations. This was all done without the express permission of Vizio TV owners.

Old TVs that did not ship with the software received an update to include it, with new TVs having it pre-installed

“The ACR programme never paired viewing data with personally identifiable information such as name or contact information, and the Commission did not allege or contend otherwise”, Vizio said in a statement. “Instead, as the complaint notes, the practices challenged by the government related only to the use of viewing data in the ‘aggregate’ to create summary reports measuring viewing audiences or behaviours.”

The software had been included in the company’s smart TVs since February 2014. Old TVs that did not originally ship with the software received an update to include it, with new TVs having the software pre-installed. The company has since updated its TV with on-screen notifications about the ACR software that includes prompts to turn it off.

As more devices are connected to the internet, consumers are questioning when data collected constitutes an invasion of privacy. But for the companies behind these devices, this is a treasure-trove of information that can be used to gain an edge over competitors.

In the case of TVs, this is especially important, as traditional networks are struggling to understand what people are watching outside of broadcast TV. Consumer analytics company Nielsen, which has traditionally dominated the TV ratings industry, has been forced to adapt in order to track what people are watching through streaming services. However, smart TV manufactures, having direct access to the screen, can collect information directly. But however anonymised this information may be, the thought of a TV watching back is unconformable for many privacy advocates.

Uber hires NASA aircraft engineer to develop flying cars

Posted on by Ben Debski

Uber’s flying car ambitions are taking off, with NASA engineer Mark Moore joining the team to work on the ambitious project. According to Bloomberg, Moore will act as director of engineering for aviation at Uber Elevate, the firm’s fledgling initiative for creating airborne on-demand vehicles.

In November 2016, the ride-hailing giant first debuted its vision for ‘on-demand aviation’, envisioning a future where lengthy commutes and bumper-to-bumper city gridlock is relieved by a network of small, electric, flying vehicles that can take off and land vertically. In its extensive white paper, the company explained that its airborne vehicles – known as vertical take-off and landing aircraft, or VTOLs – are intended to operate autonomously, with customers summoning a vehicle through the Uber app on their phones.

For Moore, Uber Elevate may provide a tangible opportunity to translate his vision into a concrete reality

“We believe that, in the long term, VTOLs will be an affordable form of daily transportation for the masses, even less expensive than owning a car”, the firm said in its report. “Just as skyscrapers allowed cities to use limited land more efficiently, urban air transportation will use three-dimensional airspace to alleviate transportation congestion on the ground.”

Moore, who consulted on Uber’s ambitious white paper, is leaving a thirty-year career at NASA in order to take up his new position with the firm. During his time working as an advanced aircraft engineer for the federal agency, Moore published his own paper exploring the feasibility of helicopter-inspired flying vehicles. For Moore, Uber Elevate may provide a tangible opportunity to translate his vision into a concrete reality. In an interview with Bloomberg, Moore explained how his decision to join Uber was influenced by the company’s practical business case for developing the futuristic technology.

“I can’t think of another company in a stronger position to be the leader for this new ecosystem and make the urban electric VTOL market real”, said Moore. “If you don’t have a business case that makes economic sense, then all of this is just a wild tech game and not really a wise investment.”

While Moore’s appointment indicates that Uber is serious about pursuing the technology, myriad technical and infrastructural issues mean that the company’s on-demand taxi system is still in its early days. As outlined in Uber’s white paper, the company will have to tackle potential noise pollution issues, limited vehicle battery life, and the economics of manufacturing VTOLs before its flying cars can take to the skies.

Uber CEO Travis Kalanick quits Trump advisory council

Posted on by Ben Debski

Uber CEO Travis Kalanick has confirmed that he will no longer take part in President Donald Trump’s business advisory group, following intense public criticism and a growing online boycott of the taxi company.

In an email to staff, obtained by The Guardian, the Uber boss explained his participation in the advisory council had been “misinterpreted” as an endorsement of President Trump and his controversial policies.

“Earlier today I spoke briefly with the President about the immigration executive order and its issues for our community. I also let him know that I would not be able to participate on his economic council”, Kalanick said. “We will fight for the rights of immigrants in our communities so that each of us can be who we are with optimism and hope for the future.”

The company has faced an online boycott campaign following President Trump’s executive order banning refugees and travellers from seven Muslim-majority countries. As protests broke out in airports across the US on January 28, Uber appeared to defy a New York City cab driver strike by lowering its prices during the scheduled work stoppage hours. This non-participation in the strike saw users take to Twitter to share the hashtag #DeleteUber, which soon saw over 200,000 customers remove the app from their phones.

On January 29, as the viral campaign attracted increasing numbers of supporters across various social media platforms, Kalanick strengthened his criticism of Trump’s executive orders, announcing the creation of a $3m legal fund to help immigrant drivers affected by the ban. Despite this pledge, Kalanick’s participation in Trump’s economic advisory council continued to provoke the ire of Uber workers and users alike, leading the CEO to ultimately step down from the panel on February 2.

Uber appeared to defy a New York cab strike by lowering its prices during the scheduled work stoppage hours

The business advisory council is due to meet with President Trump for the first time on February 3. The board is to be led by Steve Schwarzman, CEO of Blackstone, and includes representatives from General Motors, Walt Disney Company and IBM, along with tech entrepreneur Elon Musk.

In a statement released prior to the scheduled advisory council meeting, Musk explained that while he strongly objects to President Trump’s immigration ruling, he would still be attending the forum on February 3.

“Advisory councils simply provide advice and attending does not simply mean that I agree with the actions by the administration”, Musk said. “I understand the perspective of those who object to my attending this meeting, but I believe at this time that engaging on critical issues will on balance serve the greater good.”

Facebook to pay $500m in Oculus virtual reality lawsuit

Posted on by Ben Debski

A Dallas jury has ordered Facebook to pay $500m to the games company ZeniMax after its virtual reality arm, Oculus, was found to have used the firm’s technology.

The court determined that Oculus, which was bought by Facebook for $2bn in 2014, improperly used computer code belonging to ZeniMax in order to develop its own virtual reality headsets. ZeniMax first sued the start-up in March 2014, just two months after it was acquired by Facebook.

After a trial, in which Facebook CEO Mark Zuckerberg and Oculus founder Palmer Luckey both testified, the firms were found guilty of copyright infringement, misusing trademarks and breaking a non-disclosure agreement. Facebook has said that it will appeal the decision, and has previously stated that ZeniMax filed the lawsuit in a “transparent attempt” to profit from its purchase of Oculus.

The verdict came just hours before the social media giant announced its impressive fourth-quarter results, which showed a strong end to the year for the firm. The company revealed that it had enjoyed a 51 percent jump in profits in the final quarter of 2016, with this increased revenue largely driven by mobile advertising.

Facebook has branded the lawsuit a “transparent attempt” to profit from its purchase of Oculus

While the firm has come under heavy criticism for its failure to control ‘fake news’ in the weeks prior to the US presidential elections, this negative publicity has had little effect on the company’s profits or its number of daily active users. The social network now boasts over 1.86 billion users a month, while a record 1.2 billion users log into their accounts every day. As the company edges closer to amassing two billion active users, over half of the world’s internet-connected users now have a Facebook account.

“Our mission to connect the world is more important now than ever”, Facebook founder Mark Zuckerberg said in a statement reporting the results. “Our business did well in 2016, but we have a lot of work ahead to help bring people together.”

As the company looks to further expand its global presence, it is focusing its attention on sub-Saharan Africa, where it has promised to deliver high-speed internet to rural areas through a network of satellites. While a Space X launch pad explosion in September 2016 temporarily grounded the company’s satellite ambitions, Facebook maintains that it is committed to expanding its influence in the region, in addition to re-entering China, where it has been banned since 2009.