Author: Ben Debski

YouTube faces an advertiser exodus over extremist materials

Posted on by Ben Debski

Alphabet subsidiary Google has found itself facing criticism that advertisements purchased on its network run alongside, and fund, extremist content on YouTube. Responding to the revelation, bodies including Marks and Spencer, Audi, L’Oreal and the UK Government have pulled their advertising budgets from the network, leaving Google to answer questions surrounding the responsibility it has for the videos it hosts, and where advertisements are served.

An investigation conducted by The Times found that companies including L’Oreal, Nissan, and Transport for London had advertisements appearing in the midst of YouTube videos posted by extremist groups, rape apologists and white nationalists. Through Google’s advertising network, the user that uploaded the video receives a portion of what a company pays to have their advertisement placed. The implication is that these companies are directly funding extremist groups, prompting a number of companies to pull their advertisements from the network.

The advertisements that appear during these videos are determined based on the internet histories of individual users. Advertising networks, such as Google’s DoubleClick Ad Exchange, build a profile of a person based on their browsing history, and then show advertisements relevant to their interests on any website that uses the network. Since this process is entirely automated, companies don’t have complete oversight over where their advertisements appear.

The challenge for Google, particularly with YouTube, is overseeing all the content that is posted online

Speaking at the Advertising Week Europe conference, Google’s European Chief Matthew Brittin apologised and said the company would be rolling out more control to advertisers and would work to improve the company’s record of reviewing content. In a blog post, Philipp Schindler, Google’s Chief Business Operator, said the company would offer advertisers more control over where their advertisements appear.

“We have a responsibility to protect this vibrant, creative world – from emerging creators to established publishers – even when we don’t always agree with the views being expressed”, Schindler wrote. “But we also have a responsibility to our advertisers who help these publishers and creators thrive.”

The challenge for Google, particularly with YouTube, is overseeing all the content that is posted online. According to YouTube’s own figures, over 400 hours of video is uploaded every minute, making manually sifting through it impossible. YouTube has always prided itself on offering a space where anyone can freely express themselves and share their opinions, and limiting this freedom would likely be met with substantial resistance from users. Recently, YouTube also faced criticism when its ‘restricted mode’ stopped some LGBT content appearing on the site as it was flagged as ‘sensitive’ and ‘mature’, The Guardian reported.

YouTube, much like Facebook, is struggling to maintain the identity of a technology company rather than a media company. Despite hosting content and selling advertisements, YouTube places the initial responsibility for video content on the person who uploaded it, only stepping in should it be flagged as inappropriate. To appease advertisers, it is now slowly beginning to take a more focused and hands-on approach.

Automated advertisement services have also been facing increased criticism in general, with online group Sleeping Giants working to alert companies when their advertisements appear on right-wing site Breitbart.

Vodafone’s Indian unit announces merger in wake of price war

Posted on by Ben Debski

On March 20, Vodafone’s Indian unit announced a ‘merger of equals’ with Idea Cellular, which is India’s third-largest mobile operator by subscribers. The merger will form the largest telecommunications operator in India, with almost 400 million customers and 41 percent market share in terms of revenue.

The announcement comes amid a backdrop of increasingly steep competition, with at least five major telecoms providers vying for market share in the rapidly expanding Indian telecoms market. The recent launch of a new operator – Reliance Jio – has further intensified this battle for customers. Jio, backed by oil-giant Reliance Industries, was accused of introducing prices that unfairly undercut its competitors upon its arrival in the market last year. The company has claimed that it hopes to reach 90 percent of the country’s population over the course of just one year, and has set tariffs way below the prevailing rate – starting at just above $2 per month.

Vodafone will own 45.1 percent of the merged company, on the condition that it transfers $579m to the Aditya Birla Group

In the face of this intense competition, which often resembles an all-out price war, Vodafone and Idea are under pressure to achieve extensive synergies. The companies hope that the merger will bring down costs by rationalising network infrastructure, lowering maintenance expenses, and generating energy cost savings. According to Vodafone’s press release, the joint company will have the “scale and efficiency required to offer innovative and attractively priced mobile services”.

The combined company will be jointly controlled by Vodafone and the Aditya Birla Group. Under the agreement, Vodafone will own 45.1 percent of the merged company, on the condition that it transfers around $579m in cash to the Aditya Birla Group upon completion of the merger. The Aditya Birla Group will own 26 percent, but will hold the right to acquire more. The companies have agreed to move towards equalising their shareholdings over time, and have established that Vodafone is to sell down shares in the combined company if shareholdings remain unbalanced after four years.

Vodafone CEO Vittorio Colao commented: “The combination of Vodafone India and Idea will create a new champion of digital India, founded with a long-term commitment and vision to bring world-class 4G networks to villages, towns and cities across India. The combined company will have the scale required to ensure sustainable consumer choice in a competitive market and to expand new technologies – such as mobile money services – that have the potential to transform daily life for every Indian.”

Toshiba to sell Westinghouse after $6bn loss

Posted on by Ben Debski

Following heavy losses in its US nuclear division, Toshiba CEO Satoshi Tsunakawa announced in a press conference on March 14 that the company is hoping to sell off its majority stake in nuclear power subsidiary Westinghouse by the end of March 2018. He also said for the first time that a chapter 11 bankruptcy filing by Westinghouse was “possible”. The proposed divestment is the latest of numerous measures designed to ameliorate the Japanese company’s deepening financial woes.

Toshiba’s nuclear reactor subsidiary, which carried a $5.4bn price tag when it was acquired in 2006, is currently building four reactors in the US. However, the announcement of budgetary and deadline overruns at its sites in Georgia and South Carolina ultimately meant a much larger $6bn write-down in February.

In order to make up for the Westinghouse losses, Toshiba is planning to sell its much more lucrative chip business in a bid to hand the company a sturdier lifeline. But, since the US and Japanese Governments deem both businesses important to national security, Toshiba could struggle to find a buyer for either. Tsunakawa has himself hinted that Toshiba will apply extra scrutiny to prospective Chinese buyers of the chip unit.

The Westinghouse sale is the latest in a string of reluctant actions as Toshiba fights insolvency

Exacerbating the situation further are the various arguments between Toshiba and its auditors, which saw Chairman Shigenori Shiga unseated in February. For the second time, therefore, the company was compelled to delay the publication of its third-quarter earnings report. This caused the Tokyo Stock Exchange to put Toshiba’s shares under special supervision on March 15, resulting in an eight percent fall in value.

Westinghouse is now preparing for a shake-up by adjusting its employee benefits and calling in turnaround specialists. Toshiba’s divestments, though, could well be insufficient in pulling the company out of its present turmoil. Some analysts believe that selling off more valuable assets, like its prized flash-memory business, is the least Toshiba must do in order to survive.

The Westinghouse sale is the latest in a string of reluctant actions as Toshiba fights insolvency. The company’s financial panic reached fever pitch in 2015, after a £780bn accounting scandal, which has since put it under intense scrutiny. The Japanese Government is currently considering a bailout on the grounds that Toshiba is too big to fail. To avoid this outcome, the company has been selling off assets for the last two years.

While the Westinghouse sale could be a coup de grace for Toshiba, many believe it can still survive. Amir Anvarzadeh, head of Japanese equity sales at BGC Partners, said before Tsunakawa’s announcement: “Toshiba is being torn apart. It’s going to survive, it’s not going to go bankrupt. But it’s the end of Toshiba as a company with any hopes to grow.” In the context of the company’s drawn-out troubles, such a prediction is less pessimistic than it may seem.

Intel acquires Mobileye for $15bn

Posted on by Ben Debski

In a major bet on the future of self-driving vehicles, March 13 saw Intel reveal plans for a mammoth $15.2bn takeover of autonomous car technology firm Mobileye. This is not Intel’s first venture into the self-driving market; the company has already allied with BMW and Mobileye to get self-driving cars on the road by 2021. Nonetheless, the move does indicate a major gear-shift for the computer chip manufacturer, which will now stand nose-to-nose with the biggest contenders on the autonomous vehicle scene.

“Intel was behind the curve”, explained Chris Rolland of SIG Susquehanna. “It was spending a lot of money on this. Now, it basically bought itself into the global leading position in vision-based ADAS (advanced driver assistance systems).”

Analysts suggested that this aggressive expansion is motivated by Intel’s desire to get ahead of potential rivals in the market, which it reckons could be worth $70bn by 2030. Indeed, many feel the news indicates that Intel has learned from its previous mistake of having let the smartphone boom slip through its fingers, into the hands of rival chipmaker ARM Holdings. Intel will now compete even more intensely with old adversaries Nvidia and Qualcomm, the other big chip manufacturers making inroads into the self-driving scene.

On the day of the announcement, Mobileye stocks jumped 30 percent to $61.46 per share

By combining Intel’s hefty mapping, AI and machine learning software with Mobileye’s hardware and simulators, Mobileye CTO Amnon Shashua claimed the unified company will be capable of offering “an end-to-end solution for autonomous driving – from car to data centre”. Intel CEO Brian Krzanich likewise said the deal “is a great step forward for our shareholders, the automotive industry and consumers”. On the day of the announcement, Mobileye stocks jumped 30 percent on the New York Stock Exchange to $61.46 per share, while Intel’s dropped slightly, by 2.1 percent to $35.16 on the tech-heavy Nasdaq.

The deal, Intel hopes, will realise growth and profitability by virtue of its facilitating massive data-gathering from car journeys. “You can think of the car as a server on wheels”, Krzanich said. “The average autonomous car will throw out four terabytes of data a day, so this is one of the most important markets and one of the fastest-growing markets.”

Alongside technology that allows a car to map out the spaces around it and stay in-lane, Mobileye also offers hazard-detection and auto-braking features that are widely deployed on heavy trucks. Intel will most likely use its raft of harvested data to further improve the user experience, such as by tailoring car journeys around individual passengers’ travel habits. With Intel’s partnership, the existing vision of fully developing automated cars is starting to look a lot more realistic.

IPO values Snap at $24bn

Posted on by Ben Debski

After much anticipation, Snap’s IPO finally took place on March 1 at the New York Stock Exchange, giving the start-up a whopping market valuation of $24bn. Shares in Snap, the creator of time-limited messaging app Snapchat, exceeded the predicted range of $14 to $16 per share, reaching $17 instead. With 200 million shares sold, Snap’s IPO has become the third-biggest of all time for a tech company, doubling that achieved by social media rival Twitter.

Even though its shares are non-voting, Snap’s IPO was oversubscribed more than tenfold. In spite of the general enthusiasm, however, corporate governance concerns have been raised as a result of this unprecedented caveat, particularly as it may set a precedent for other unicorn firms to follow suit, leaving investors with little control in how the company operates.

While Snap faces similar challenges to rival Twitter, the Los Angeles-based start-up is expected to becoming a much bigger earner

Trading is due to begin on March 2, under the ticker name SNAP. Despite the worldwide popularity of Snapchat, particularly among teenagers and Millennials, the company has yet to fully monetise this success. In 2016, for example, Snap’s net losses grew by 38 percent, notwithstanding a revenue increase of seven times the amount earned the year before.

While Snap faces similar challenges to rival Twitter, the Los Angeles-based start-up is expected to becoming a much bigger earner in terms of advertising revenue. This anticipation is supported by the ongoing developments introduced by co-founder and CEO Evan Spiegel, such as Snapchat’s Discover feature, whereby content is shared by the likes of media giants CNN and ESPN, as well as 2016’s Spectacles physical product offering.

Goldmach Sachs, the IPO’s leading bank, has estimated that Snap’s number of daily users could exceed 220 million, with its revenue swelling to $2bn by 2018 – five times that of 2016.

Though Snap still has work to do it terms of monetisation, the company is in an excellent position to grow its revenue, particularly given the fast-paced level of innovation encouraged by Spiegel. With a $24bn market valuation now backing the company, its commercial success may well rival that of Facebook in the coming years.

YouTube launches its own TV service

Posted on by Ben Debski

After months of speculation, YouTube has finally unveiled YouTube TV, its live television service that will cost subscribers $35 a month. The package will carry more than 40 channels, including major US broadcast networks such as ABC, Fox, NBC and ESPN.

The service, which is due to launch this spring in a new, standalone app, will allow users to watch live TV from any portable device, and can be streamed to television sets using Google Chromecast. The app is compatible with both Android and iOS platforms, offering on-the-go access from a range of mobile and tablet devices. At $35 a month, the package is around half the price of a traditional cable subscription, offering a competitive rate for younger users who may not wish to pay for a big bundle.

The company has created a cloud DVR service as part of the YouTube TV package, which will allow users to record as much live TV as they desire

“It’s live TV designed for the YouTube generation – those who want to watch what they want, when they want, how they want, without commitments”, the company wrote in a blog post confirming the launch.

Responding to consumer demands, the video site has created a cloud DVR service as part of the YouTube TV package, which will allow users to record as much live TV as they desire, without ever running out of storage. Due to the cloud computing feature, these hours of recorded footage will be stored remotely, meaning that they won’t eat into precious memory or data on users’ phones and tablets.

“Consumers have made it clear that they want live TV without all the hassle”, the firm explained. “They tell us they want TV to be more like YouTube.”

While the service will be available on TV through Chromecast, the package is aimed at mobile-loving younger audiences, who tend not to watch TV in a traditional setting. The service hopes to appeal to this tech-savvy generation by bringing television content to their preferred devices, namely mobiles and tablets.

With Facebook having recently launched a standalone video app, the online streaming world is becoming an increasingly crowded market. As Netflix has proven with its hugely popular collection of exclusive series and films, original content is the key to success in this competitive field. With this in mind, YouTube has been focusing on promoting its own original shows of late, with the creation of its own paid subscription service, Youtube Red, in 2015. The service, which features films and shows starring popular YouTubers, will be available to all new YouTube TV subscribers.

Is sexism endemic in Silicon Valley, or is Uber’s culture an extreme example?

Posted on by Ben Debski

Allegations of copyright infringement levelled toward Uber by rival tech giant Google turned out to be the lesser of two evil plaguing the taxi firm in February. The second, far more significant problem has been the stunning revelation of the ‘systemic‘ sexual harassment of female engineers within the company.

However, while one source of Uber’s problems is the company’s rapid growth, comparing it to other Silicon Valley giants reveals a more basic issue. In short, Uber’s fundamental business model implies that inclusiveness is easily superseded in the list of managerial priorities by the goals of profitability and market disruption, opening the door to unconscious bias.

Tripartite troubles
There have been three main events in the scandal so far. First, on February 19, former Uber employee Susan Fowler wrote a blog post detailing her experience of sexual advances from a manager only two weeks after joining the company in November 2015. Fowler claimed “organisational chaos…and sexism” caused female co-workers to quit, eroding the proportion of women in Fowler’s department from 25 percent to six percent. Emboldened by Fowler’s disclosure, a total of 100 female employees then held a meeting with Uber CEO Travis Kalanick on February 23, asserting that a “systemic problem” exists within the company. Meanwhile, various anonymous whistleblowers have since spoken to the press about similar experiences of workplace sexism in the company.

Last week, a former employee from Uber’s Singapore office told the BBC that such problems emerged “when the company started seeing ‘completely insane growth’” in 2014. “They grew so quickly they just weren’t equipped. At the beginning there was just no formalised HR process.”

Rapid growth is certainly part of the problem. According to Jeremy Thornton, co-founder of Oasis HR and founder of the HR Think Tank series, as businesses grow, they generally work toward their priorities of profitability, learning and development, and reward structures first. “Diversity and inclusion is probably one of the last areas that an organisation will look at”, Thornton explained. “There are some organisations with 10,000 employees who might only have one person representing them from a diversity perspective.”

If growth is too fast, progressivism can fall by the wayside. But a comparison of Uber with other rapidly expanding tech-focused companies suggests that fast growth is not the only factor at play. Take Facebook as an example – despite fake news and data harvesting pecking at its reputation, the company has managed to retain a good public image. The firm grew quickly following its 2006 establishment, and while it has crystallised into a more mature form, with luxury offices and a stock market flotation, its culture has nonetheless been said to retain the hallmarks of a ‘scrappy start-up‘. Facebook and Uber are patently different despite sharing the experience of rapid expansion.

Rotten roots
There are three main reasons for this, all of which boil down to the fundamental nature of both companies. First, Facebook and Uber exist in different markets. This gives Facebook a greater incentive to create a positive working environment for its employees. If Facebook is to stay in touch with its millennial customers, and if it expects users to play by the rules of its own community standards, it needs to follow those rules itself. Uber, meanwhile, does not.

Kalanick, with his courting of Donald Trump, has done little to soften Uber’s image in this regard

Second, whereas Uber is disrupting an existing market, Facebook all but created its own industry. This affords more scope for the firms’ cultures to diverge. Facebook has been able to rely more on the quality of its product to carry it through, allowing space for better ethics to flourish from the outset. In Uber’s industry, external competition has always been at play, which distracts from internal ethical considerations and leads to unconscious bias going unchecked.

Finally, CEOs themselves play a vital role. In business, as in politics, figureheads are very important in shaping cultures. The emboldening of women toward defiance following Fowler’s testimonial is a good example. Regardless of whether Zuckerberg is actually more in-touch with millennial values than Kalanick, he appears to be – which is what matters.

When asked about the creation of sexist cultures, however, Thornton said: “I do not think it would be fair to say it is directly due to the CEO. Any organisation where you start to get to the size where you have different levels of management [and] different geographical locations, especially, then behaviours might be driven by strongly opinionated individuals.”

Nonetheless, Thornton also explained that CEOs do have the power to effect change by installing good support structures and by changing their public personas. “It should not be underestimated how much impact a CEO can have on the business…[nor] the indirect impact their behaviour can have.”

Kalanick, with his recent courting of US President Donald Trump, has done little to soften Uber’s image in this regard. In a world where employees use managerial figureheads as a reference-point when building interactions, Kalanick must put in place the right formal structures and prune his own uber-masculinity if he hopes to see social change ripple outwards. It is common knowledge that investing in diversity, inclusivity and human capital are crucial steps toward securing long-term profitability and sustainable development: something that Uber would do well to remember moving forward.

Samsung heir formally indicted in South Korean bribery scandal

Posted on by Ben Debski

South Korea’s special prosecutor’s office has confirmed that it will indict Samsung heir-apparent Lee Jae-yong on multiple charges, including bribery, embezzlement and perjury. Four other company executives have also been indicted on similar charges, as the South Korean courts take the first formal steps towards prosecution in the high-profile corruption probe. Following the prosecutor’s announcement, three of the indicted executives stepped down from their positions at Samsung.

Lee was formally arrested on February 17, as part of a corruption investigation surrounding the now-impeached President Park Geun-hye. The Samsung Electronics Vice Chairman is accused of providing up to $36m to a top political aide and close friend of the President, Choi Soon-sil.

In return for these substantial donations to Choi’s overseas non-profit foundations, the political crony allegedly ensured state approval for a major restructuring initiative at Samsung, which saw the technology giant merge two of its units. This 2015 merger bolstered Lee’s plans to consolidate his control over the sprawling conglomerate, smoothing an eventual transition of power from his father, current Samsung Chairman Lee Kun-hee.

The arrests come as President Park awaits a Constitutional Court ruling on whether to uphold her December impeachment

In the wake of the indictments, Samsung has confirmed that it will be dismantling its controversial Future Strategy Office, a key unit responsible for overseeing major initiatives at the firm, such as new investments and partnerships. The corporate strategic office served as the company’s top policy-making body, enabling the founding Lee family to wield unparalleled influence over the conglomerate. The office dealt closely with government affairs, and has come under scrutiny as a potential hub for influence peddling and lobbying efforts.

The arrests come as President Park awaits a Constitutional Court ruling on whether to uphold her December impeachment, with the result expected within the next month. Park’s impeachment was triggered by accusations of political interference by the President’s confidante, who has since been jailed. According to prosecutors, Choi profoundly influenced government affairs during Park’s administration, by forcing South Korea’s largest conglomerates, known as chaoebols, into giving tens of million dollars in donations in exchange for political influence. While several of the nation’s biggest businesses are implicated in the scheme, Samsung has emerged as the single largest donor to Choi’s various foundations.

As the corruption probe deepens, Samsung’s Lee continues to deny any wrongdoing. If he is found guilty by the South Korean courts, however, the Samsung heir could face up to 20 years in prison.

Mobile World Congress goes back to the future as old becomes new

Posted on by Ben Debski

What was old is new again at this year’s Mobile World Congress (MWC) in Barcelona, as phone manufactures launch myriad new devices in an attempt to overtake a struggling Samsung. While most are supremely modern, some of the new products have taken inspiration from the popular phones of a decade ago.

Nokia has been commanding a large share of the attention at MWC. Finnish company HMD Global acquired the Nokia brand from Microsoft in December 2016, and has unveiled the first devices it will produce, including a relaunch of the iconic 3310. Originally released in 2000, the Nokia 3310 sold over 126 million units and was loved for its usability, durability and then-modern style. The new 3310 include a two-megapixel camera, 31-day battery life on standby, and a modern version of the game Snake to ensure maximum nostalgia. HMD also showcased a trio of modern Nokia smartphones, all running Android, in an effort to push the brand back towards mainstream popularity. After partnering with Microsoft in 2011, Nokia floundered as Microsoft’s mobile operating systems failed to gain market traction.

The BlackBerry brand also made a return, complete with a physical keyboard. Chinese manufacturer TCL had already built a number of devices under the BlackBerry name, but the BlackBerry KeyOne is the first with a keyboard. It’s also running Android, in an attempt to update the device while still keeping the physical form that once made the brand the popular choice for professionals. Aside from the keyboard, the KeyOne is also built with digital security in mind. Despite this, the phone will have to be a runaway success to reverse BlackBerry’s long decline.

Many new products have taken inspiration from the popular phones of a decade ago

Sony, LG, Huawei, ZTE and Alcatel have also announced new smartphones, but not Samsung. While Samsung’s press conference featured two tablet computers and a VR headset, for the first time since 2013 the Korean company did not unveil a new Galaxy S device. The company is still reeling from the disastrous Galaxy Note 7 fiasco and ongoing corruption probe, with competitors clearly sensing an opportunity to topple the world’s biggest smartphone brand. Samsung announced that it would announce a new smartphone on March 29 at an event in New York.

Google sues Uber in self-driving car dispute

Posted on by Ben Debski

Waymo, the self-driving car firm owned by Google parent company Alphabet, is taking legal action against Uber, accusing the taxi giant of stealing its technology.

The lawsuit, filed in San Francisco on February 23, alleges that a former Waymo employee secretly stole critical information from the company, before leaving to launch his own venture, which eventually became the self-driving truck company Otto.

According to Waymo, Anthony Levandowski downloaded over 14,000 highly confidential files from the firm’s hardware systems, which contained classified information along with blueprints and testing documentation. He then attempted to erase his digital fingerprints from the laptop by wiping and reformatting the device.

Levandowski resigned six weeks after the incident, and allegedly used the stolen trade secrets to advance autonomous truck development at Otto. Uber acquired the start-up for a reported $680m in August 2016, and placed Levandowski in charge of all of its ongoing driverless car operations.

In a statement concerning the lawsuit, Waymo explained how Uber’s autonomous technology bears an indisputable similarity to its own design. The dispute relates to the company’s pioneering LIDAR technology, which uses laser beams to create a 3D image of the world outside of the moving car. This technology is essential to autonomous driving, as it enables self-driving vehicles to detect and respond to developing hazards on the road, such as other vehicles, cyclists and pedestrians.

Waymo alleged Uber’s autonomous technology bears an indisputable similarity to its own

“Hundreds of Waymo engineers have spent thousands of hours, and our company has invested millions of dollars, to design a highly specialised and unique LIDAR system”, Waymo said in its statement.

“The configuration and specifications of our LIDAR sensors are unique to Waymo. Misappropriating this technology is akin to stealing a secret recipe from a beverage company.”

The lawsuit is the latest in a string of challenges for Uber, many of which have had a negative impact on the firm’s brand image. In early February, CEO Travis Kalanick faced staunch criticism from Uber users and employees alike over his participation in President Trump’s economic advisory council, eventually stepping down from the group after public backlash morphed into a viral boycotting campaign. On February 19, a former Uber employee went public with her experiences of sexual harassment and discrimination at the company, describing a pervasive culture of inappropriate workplace behaviour at the firm.

While the company is now conducting an internal investigation into the work environment at Uber, the damage to the firm’s reputation has already been done in the eyes of many customers. A costly, high-profile lawsuit with Google will undoubtedly deliver another blow to Uber as it looks to repair its tarnished brand.

UPS debuts drone-launching truck

Posted on by Ben Debski

The race to bring drone delivery to the masses has a new entrant, with UPS completing its first aerial delivery via drone. The company’s use of drones, however, is quite different to its competitors, including Amazon, with the machines designed to support drivers instead of replacing them.

The company’s first drone-assisted delivery took place in Tampa, Florida. The delivery system the company has developed involves a drone launching directly from a specially outfitted delivery truck. The drone is loaded by the driver and launched out of a retractable panel in the roof. After it completes the delivery, the drone returns to the hatch on top of the delivery truck. UPS claims that the drones have a flight time of approximately 30 minutes, and can carry up to 10lb.

UPS’ vision of drone delivery seems closer to reality than Amazon’s

This method represents a substantially different approach to drone delivery compared to what other businesses have trialled. Amazon has experimented with drone delivery in the UK with a system that has drones launching directly from a warehouse, completely removing humans from the delivery process. UPS’ version keeps its delivery drivers, with the system likely to be particularly useful for drivers on long rounds in rural areas.

With the current range and flight-time of drones, UPS’ vision of drone delivery seems closer to reality than Amazon’s. Most people simply do not live close enough to a dispatch warehouse for the latter’s system to make sense.

If implemented, UPS claimed that it stands to make substantial savings on its distribution costs. As reported by The Verge, the company estimates that if every one of its drivers could cut a single mile from their daily distance driven, it could save up to $50m per year.

However, the technology still has a long way to go before drones are regularly ferrying packages to customers. TechCrunch reported that the drone failed on its second delivery attempt, and current regulations in the US require drones to be within sight of their operators at all times.

Facebook fires up Snapchat rivalry with new ‘status’ feature on Whatsapp

Posted on by Ben Debski

In a bid to stave off growing competition from Snapchat, Facebook – through Whatsapp – has launched a new feature called ‘status’. The feature, unveiled on February 20, will allow users to share media to a feed, and scroll through content posted by others, much like they currently do on Instagram and Facebook. Interestingly, in an obvious imitation of Snapchat’s ‘stories’ feature launched three years ago, content will disappear after 24 hours.

Facebook launched a similar time-limited feature on Instagram last year, which was shamelessly also called ‘stories’. Though similar to that update, the recent announcement marks a huge shift for Whatsapp, given that it will change how the platform’s billion monthly users currently use the app. Up to now, consumers have used Whatsapp as a functional tool to send direct messages, either via one-on-one conversations or as part of a group. Now, with the status feature, users will begin spending more time on the platform as a source of entertainment.

Whatsapp aims to allow users to communicate with organisations that people “want to hear from”

Status thus opens the door for new business and advertising opportunities within Whatsapp – a strategy that has been in the pipeline since the platform scrapped its annual subscription fee last year. Instead of the nominal fee, which the company found to be ineffective in various countries, Whatsapp instead aims to allow users to communicate with organisations that people “want to hear from”.

“That could mean communicating with your bank about whether a recent transaction was fraudulent, or with an airline about a delayed flight. We all get these messages elsewhere today – through text messages and phone calls – so we want to test new tools to make this easier to do on Whatsapp, while still giving you an experience without third-party ads and spam”, said a Whatsapp blog on the update.

As chat bots have so far been unsuccessful, it would seem that this is the only way Whatsapp can finally monetise its mammoth global audience, despite co-founder and CEO Jan Koum being vehemently against advertisements from the very beginning.