WhatsApp could wreck Snapchat again by copying ephemeral messaging

WhatsApp already ruined Snapchat’s growth once. WhatsApp Status, its clone of Snapchat Stories, now has 450 million daily active users compared to Snapchat’s 188 million. That’s despite its 24-hour disappearing slideshows missing tons of features including augmented reality selfie masks, animated GIFs, or personalized avatars like Bitmoji. A good enough version of Stories conveniently baked into the messaging app beloved in the developing world where Snapchat wasn’t proved massively successful. Snapchat actually lost total users in Q2 and Q3 2018, and even lost Rest Of World users in Q2 despite that being where late stage social networks rely on for growth.

That’s why it’s so surprising that WhatsApp hasn’t already copied the other big Snapchat feature, ephemeral messaging. When chats can disappear, people feel free to be themselves — more silly, more vulnerable, more expressive. For teens who’ve purposefully turned away from the permanence of the Facebook profile timeline, there’s a sense of freedom in ephemerality. You don’t have to worry about old stuff coming back to haunt or embarass you. Snapchat rode this idea to become a cultural staple for the younger generation.

Yet right now WhatsApp only lets you send permanent photos, videos, and texts. There is an Unsend option, but it only works for an hour after a message is sent. That’s far from the default ephemerality of Snapchat where seen messages disappear once you close the chat window unless you purposefully tap to save them.

Instagram has arrived at a decent compromise. You can send both permanent and temporary photos and videos. Text messages are permanent by default, but you can unsend even old ones. The result is the flexibility to both chat through expiring photos and off-the-cuff messages knowing they will or can disappear, while also being able to have reliable, utilitarian chats and privately share photos for posterity without the fear that one wrong tap could erase them. When Instagram Direct added ephemeral messaging, it saw a growth spurt to over 375 million monthly users as of April 2017.

Snapchat lost daily active users the past two quarters

WhatsApp should be able to build this pretty easily. Add a timer option when people send media so photos or videos can disappear after 10 seconds, a minute, an hour, or a day. Let people add a similar timer to specific messages they send, or set a per chat thread default for how long your messages last similar to fellow encrypted messaging app Signal.

Snap CEO Evan Spiegel’s memo leaked by Cheddar’s Alex Heath indicates that he views chat with close friends as the linchpin of his app that was hampered by this year’s disastrous redesign. He constantly refers to Snapchat as the fastest way to communicate. That might be true for images but not necessarily text, as BTIG’s Rich Greenfield points out, citing how expiring text can causes conversations to break down. It’s likely that Snapchat will double-down on messaging now that Stories has been copied to death.

Given its interest in onboarding older users, that might mean making texts easier to keep permanent or at least lengthening how long they last before they disappear. And with its upcoming Project Mushroom re-engineering of the Snapchat app so it works better in developing markets, Snap will increasingly try to become WhatsApp.

…Unless WhatsApp can become Snapchat first. Spiegel proved people want the flexibility of temporary messaging. Who cares who invented something if it can be brought to more people to deliver more joy? WhatsApp should swallow its pride and embrace the ephemeral.

via Click on the link for the full article

How cities can fix tourism hell

A steep and rapid rise in tourism has left behind a wake of economic and environmental damage in cities around the globe. In response, governments have been responding with policies that attempt to limit the number of visitors who come in. We’ve decided to spare you from any more Amazon HQ2 talk and instead focus on why cities should shy away from reactive policies and should instead utilize their growing set of technological capabilities to change how they manage tourists within city lines.

Consider this an ongoing discussion about Urban Tech, its intersection with regulation, issues of public service, and other complexities that people have full PHDs on. I’m just a bitter, born-and-bred New Yorker trying to figure out why I’ve been stuck in between subway stops for the last 15 minutes, so please reach out with your take on any of these thoughts: @Arman.Tabatabai@techcrunch.com.
  

The struggle for cities to manage “Overtourism”

Well – it didn’t take long for the phrase “overtourism” to get overused. The popular buzzword describes the influx of tourists who flood a location and damage the quality of life for full-time residents. The term has become such a common topic of debate in recent months that it was even featured this past week on Oxford Dictionaries’ annual “Words of the Year” list.

But the expression’s frequent appearance in headlines highlights the growing number of cities plagued by the externalities from rising tourism.

In the last decade, travel has become easier and more accessible than ever. Low-cost ticketing services and apartment-rental companies have brought down the costs of transportation and lodging; the ubiquity of social media has ticked up tourism marketing efforts and consumer demand for travel; economic globalization has increased the frequency of business travel; and rising incomes in emerging markets have opened up travel to many who previously couldn’t afford it.

Now, unsurprisingly, tourism has spiked dramatically, with the UN’s World Tourism Organization (UNWTO) reporting that tourist arrivals grew an estimated 7% in 2017 – materially above the roughly 4% seen consistently since 2010. The sudden and rapid increase of visitors has left many cities and residents overwhelmed, dealing with issues like overcrowding, pollution, and rising costs of goods and housing.

The problems cities face with rising tourism are only set to intensify. And while it’s hard for me to imagine when walking shoulder-to-shoulder with strangers on tight New York streets, the number of tourists in major cities like these can very possibly double over the next 10 to 15 years.

China and other emerging markets have already seen significant growth in the middle-class and have long runway ahead. According to the Organization for Economic Co-operation and Development (OECD), the global middle class is expected to rise from the 1.8 billion observed in 2009 to 3.2 billion by 2020 and 4.9 billion by 2030. The new money brings with it a new wave of travelers looking to catch a selfie with the Eiffel Tower, with the UNWTO forecasting international tourist arrivals to increase from 1.3 billion to 1.8 billion by 2030.

With a growing sense of urgency around managing their guests, more and more cities have been implementing policies focused on limiting the number of tourists that visit altogether by imposing hard visitor limits, tourist taxes or otherwise.

But as the UNWTO points out in its report on overtourism, the negative effects from inflating tourism are not solely tied to the number of visitors in a city but are also largely driven by touristy seasonality, tourist behavior, the behavior of the resident population, and the functionality of city infrastructure. We’ve seen cities with few tourists, for example, have experienced similar issues to those experienced in cities with millions.

While many cities have focused on reactive policies that are meant to quell tourism, they should instead focus on technology-driven solutions that can help manage tourist behavior, create structural changes to city tourism infrastructure, while allowing cities to continue capturing the significant revenue stream that tourism provides.

Smart city tech enabling more “tourist-ready” cities

THOMAS COEX/AFP/Getty Images

Yes, cities are faced with the headwind of a growing tourism population, but city policymakers also benefit from the tailwind of having more technological capabilities than their predecessors. With the rise of smart city and Internet of Things (IoT) initiatives, many cities are equipped with tools such as connected infrastructure, lidar-sensors, high-quality broadband, and troves of data that make it easier to manage issues around congestion, infrastructure, or otherwise.

On the congestion side, we have already seen companies using geo-tracking and other smart city technologies to manage congestion around event venues, roads, and stores. Cities can apply the same strategies to manage the flow of tourist and resident movement.

And while you can’t necessarily prevent people from people visiting the Louvre or the Coliseum, cities are using a variety of methods to incentivize the use of less congested space or disperse the times in which people flock to highly-trafficked locations by using tools such as real-time congestion notifications, data-driven ticketing schedules for museums and landmarks, or digitally-guided tours through uncontested routes.

Companies and municipalities in cities like London and Antwerp are already working on using tourist movement tracking to manage crowds and help notify and guide tourists to certain locations at the most efficient times. Other cities have developed augmented reality tours that can guide tourists in real-time to less congested spaces by dynamically adjusting their routes.

A number of startups are also working with cities to use collected movement data to help reshape infrastructure to better fit the long-term needs and changing demographics of its occupants. Companies like Stae or Calthorpe Analytics use analytics on movement, permitting, business trends or otherwise to help cities implement more effective zoning and land use plans. City planners can use the same technology to help effectively design street structure to increase usable sidewalk space and to better allocate zoning for hotels, retail or other tourist-friendly attractions.

Focusing counter-overtourism efforts on smart city technologies can help adjust the behavior and movement of travelers in a city through a number of avenues, in a way tourist caps or tourist taxes do not.

And at the end of the day, tourism is one of the largest sources of city income, meaning it also plays a vital role in determining the budgets cities have to plow back into transit, roads, digital infrastructure, the energy grid, and other pain points that plague residents and travelers alike year-round. And by disallowing or disincentivizing tourism, cities can lose valuable capital for infrastructure, which can subsequently exacerbate congestion problems in the long-run.

Some cities have justified tourist taxes by saying the revenue stream would be invested into improving the issues overtourism has caused. But daily or upon-entry tourist taxes we’ve seen so far haven’t come close to offsetting the lost revenue from disincentivized tourists, who at the start of 2017 spent all-in nearly $700 per day in the US on transportation, souvenirs and other expenses according to the U.S. National Travel and Tourism Office.

In 2017, international tourism alone drove to $1.6 trillion in earnings and in 2016, travel & tourism accounted for roughly 1 in 10 jobs in the global economy according to the World Travel and Tourism Council. And the benefits of travel are not only economic, with cross-border tourism promoting transfers of culture, knowledge and experience.

But to be clear, I don’t mean to say smart city technology initiatives alone are going to solve overtourism. The significant wave of growth in the number of global travelers is a serious challenge and many of the issues that result from spiking tourism, like housing affordability, are incredibly complex and come down to more than just data. However, I do believe cities should be focused less on tourist reduction and more on solutions that enable tourist management.

Utilizing and allocating more resources to smart city technologies can not only more effectively and structurally limit the negative impacts from overtourism, but it also allows cities to benefit from a significant and high growth tourism revenue stream. Cities can then create a virtuous cycle of reinvestment where they plow investment back into its infrastructure to better manage visitor growth, resident growth, and quality of life over the long-term. Cities can have their cake and eat it too.

And lastly, some reading while in transit:

via Click on the link for the full article

How cities can fix tourism hell

A steep and rapid rise in tourism has left behind a wake of economic and environmental damage in cities around the globe. In response, governments have been responding with policies that attempt to limit the number of visitors who come in. We’ve decided to spare you from any more Amazon HQ2 talk and instead focus on why cities should shy away from reactive policies and should instead utilize their growing set of technological capabilities to change how they manage tourists within city lines.

Consider this an ongoing discussion about Urban Tech, its intersection with regulation, issues of public service, and other complexities that people have full PHDs on. I’m just a bitter, born-and-bred New Yorker trying to figure out why I’ve been stuck in between subway stops for the last 15 minutes, so please reach out with your take on any of these thoughts: @Arman.Tabatabai@techcrunch.com.
  

The struggle for cities to manage “Overtourism”

Well – it didn’t take long for the phrase “overtourism” to get overused. The popular buzzword describes the influx of tourists who flood a location and damage the quality of life for full-time residents. The term has become such a common topic of debate in recent months that it was even featured this past week on Oxford Dictionaries’ annual “Words of the Year” list.

But the expression’s frequent appearance in headlines highlights the growing number of cities plagued by the externalities from rising tourism.

In the last decade, travel has become easier and more accessible than ever. Low-cost ticketing services and apartment-rental companies have brought down the costs of transportation and lodging; the ubiquity of social media has ticked up tourism marketing efforts and consumer demand for travel; economic globalization has increased the frequency of business travel; and rising incomes in emerging markets have opened up travel to many who previously couldn’t afford it.

Now, unsurprisingly, tourism has spiked dramatically, with the UN’s World Tourism Organization (UNWTO) reporting that tourist arrivals grew an estimated 7% in 2017 – materially above the roughly 4% seen consistently since 2010. The sudden and rapid increase of visitors has left many cities and residents overwhelmed, dealing with issues like overcrowding, pollution, and rising costs of goods and housing.

The problems cities face with rising tourism are only set to intensify. And while it’s hard for me to imagine when walking shoulder-to-shoulder with strangers on tight New York streets, the number of tourists in major cities like these can very possibly double over the next 10 to 15 years.

China and other emerging markets have already seen significant growth in the middle-class and have long runway ahead. According to the Organization for Economic Co-operation and Development (OECD), the global middle class is expected to rise from the 1.8 billion observed in 2009 to 3.2 billion by 2020 and 4.9 billion by 2030. The new money brings with it a new wave of travelers looking to catch a selfie with the Eiffel Tower, with the UNWTO forecasting international tourist arrivals to increase from 1.3 billion to 1.8 billion by 2030.

With a growing sense of urgency around managing their guests, more and more cities have been implementing policies focused on limiting the number of tourists that visit altogether by imposing hard visitor limits, tourist taxes or otherwise.

But as the UNWTO points out in its report on overtourism, the negative effects from inflating tourism are not solely tied to the number of visitors in a city but are also largely driven by touristy seasonality, tourist behavior, the behavior of the resident population, and the functionality of city infrastructure. We’ve seen cities with few tourists, for example, have experienced similar issues to those experienced in cities with millions.

While many cities have focused on reactive policies that are meant to quell tourism, they should instead focus on technology-driven solutions that can help manage tourist behavior, create structural changes to city tourism infrastructure, while allowing cities to continue capturing the significant revenue stream that tourism provides.

Smart city tech enabling more “tourist-ready” cities

THOMAS COEX/AFP/Getty Images

Yes, cities are faced with the headwind of a growing tourism population, but city policymakers also benefit from the tailwind of having more technological capabilities than their predecessors. With the rise of smart city and Internet of Things (IoT) initiatives, many cities are equipped with tools such as connected infrastructure, lidar-sensors, high-quality broadband, and troves of data that make it easier to manage issues around congestion, infrastructure, or otherwise.

On the congestion side, we have already seen companies using geo-tracking and other smart city technologies to manage congestion around event venues, roads, and stores. Cities can apply the same strategies to manage the flow of tourist and resident movement.

And while you can’t necessarily prevent people from people visiting the Louvre or the Coliseum, cities are using a variety of methods to incentivize the use of less congested space or disperse the times in which people flock to highly-trafficked locations by using tools such as real-time congestion notifications, data-driven ticketing schedules for museums and landmarks, or digitally-guided tours through uncontested routes.

Companies and municipalities in cities like London and Antwerp are already working on using tourist movement tracking to manage crowds and help notify and guide tourists to certain locations at the most efficient times. Other cities have developed augmented reality tours that can guide tourists in real-time to less congested spaces by dynamically adjusting their routes.

A number of startups are also working with cities to use collected movement data to help reshape infrastructure to better fit the long-term needs and changing demographics of its occupants. Companies like Stae or Calthorpe Analytics use analytics on movement, permitting, business trends or otherwise to help cities implement more effective zoning and land use plans. City planners can use the same technology to help effectively design street structure to increase usable sidewalk space and to better allocate zoning for hotels, retail or other tourist-friendly attractions.

Focusing counter-overtourism efforts on smart city technologies can help adjust the behavior and movement of travelers in a city through a number of avenues, in a way tourist caps or tourist taxes do not.

And at the end of the day, tourism is one of the largest sources of city income, meaning it also plays a vital role in determining the budgets cities have to plow back into transit, roads, digital infrastructure, the energy grid, and other pain points that plague residents and travelers alike year-round. And by disallowing or disincentivizing tourism, cities can lose valuable capital for infrastructure, which can subsequently exacerbate congestion problems in the long-run.

Some cities have justified tourist taxes by saying the revenue stream would be invested into improving the issues overtourism has caused. But daily or upon-entry tourist taxes we’ve seen so far haven’t come close to offsetting the lost revenue from disincentivized tourists, who at the start of 2017 spent all-in nearly $700 per day in the US on transportation, souvenirs and other expenses according to the U.S. National Travel and Tourism Office.

In 2017, international tourism alone drove to $1.6 trillion in earnings and in 2016, travel & tourism accounted for roughly 1 in 10 jobs in the global economy according to the World Travel and Tourism Council. And the benefits of travel are not only economic, with cross-border tourism promoting transfers of culture, knowledge and experience.

But to be clear, I don’t mean to say smart city technology initiatives alone are going to solve overtourism. The significant wave of growth in the number of global travelers is a serious challenge and many of the issues that result from spiking tourism, like housing affordability, are incredibly complex and come down to more than just data. However, I do believe cities should be focused less on tourist reduction and more on solutions that enable tourist management.

Utilizing and allocating more resources to smart city technologies can not only more effectively and structurally limit the negative impacts from overtourism, but it also allows cities to benefit from a significant and high growth tourism revenue stream. Cities can then create a virtuous cycle of reinvestment where they plow investment back into its infrastructure to better manage visitor growth, resident growth, and quality of life over the long-term. Cities can have their cake and eat it too.

And lastly, some reading while in transit:

via Click on the link for the full article

Microsoft could release a disc-less Xbox One

According to a new report from Thurott, Microsoft has been working on a new console in the Xbox One family. This cheaper model could play regular Xbox One games, but there would be no Blu-Ray drive.

This move would lower the price of the entry-level Xbox One. An Xbox One S officially starts at $299 but you can currently find it for around $250 on Amazon. The disc-less Xbox One could start at $199.

If you already have an Xbox One and physical games, you could imagine going to an official retailer to trade your discs for a digital download code. Let’s hope that this new Xbox comes with a big hard drive for those who have a slow internet connection.

Back when Microsoft first unveiled the Xbox One in 2013, the company wanted to make a big push toward digital games. The original plan was that you would associate your physical games with your Xbox account. After that, you could play the game even without inserting the disc. Microsoft also planned a way to lend a digital game to a friend for 30 days.

After some backlash, Microsoft gave up on this plan and switched back to a more traditional system. But it’s been five years, digital games are more popular than ever and internet connections are faster than ever.

Microsoft also thinks the future of games is based on subscriptions. With the Xbox Game Pass, you can access dozens of games for $10 per month. You can also subscribe to EA Access on the Xbox One. Eventually, you could imagine replacing the Xbox altogether with a subscription for a streaming service. But we’re not there yet.

According to Thurott, Microsoft is also working on an updated Xbox One S that could be a bit cheaper. This one would have a traditional disc drive.

via Click on the link for the full article

Microsoft could release a disc-less Xbox One

According to a new report from Thurott, Microsoft has been working on a new console in the Xbox One family. This cheaper model could play regular Xbox One games, but there would be no Blu-Ray drive.

This move would lower the price of the entry-level Xbox One. An Xbox One S officially starts at $299 but you can currently find it for around $250 on Amazon. The disc-less Xbox One could start at $199.

If you already have an Xbox One and physical games, you could imagine going to an official retailer to trade your discs for a digital download code. Let’s hope that this new Xbox comes with a big hard drive for those who have a slow internet connection.

Back when Microsoft first unveiled the Xbox One in 2013, the company wanted to make a big push toward digital games. The original plan was that you would associate your physical games with your Xbox account. After that, you could play the game even without inserting the disc. Microsoft also planned a way to lend a digital game to a friend for 30 days.

After some backlash, Microsoft gave up on this plan and switched back to a more traditional system. But it’s been five years, digital games are more popular than ever and internet connections are faster than ever.

Microsoft also thinks the future of games is based on subscriptions. With the Xbox Game Pass, you can access dozens of games for $10 per month. You can also subscribe to EA Access on the Xbox One. Eventually, you could imagine replacing the Xbox altogether with a subscription for a streaming service. But we’re not there yet.

According to Thurott, Microsoft is also working on an updated Xbox One S that could be a bit cheaper. This one would have a traditional disc drive.

via Click on the link for the full article

SparkLabs Taipei closes initial $4.25M for its first venture capital fund

SparkLabs Taipei, part of SparkLabs Group, the global network of accelerator programs and funds that works with emerging startup ecosystems, has raised $4.25 million in an initial close led by CTBC Group, along with individual investors, for its first venture capital fund. SparkLabs Taipei also announced today that it has added Atlanta Hawks player Jeremy Lin, who sparked “Linsanity” as the first player of Chinese- or Taiwanese-descent in the NBA, to its board of advisors.

The funding was first disclosed in a Form D filed with the SEC this week that says SparkLabs Taipei’s ultimate goal for the fund is to raise $10 million.

In a prepared statement, Lin said “SparkLabs Taipei is an innovative fund offering support and guidance for entrepreneurs in Taiwan. Being a trailblazer is challenging and having a strong support is critical to your success. I’m excited to join a strong team of partners and advisors at SparkLabs Taipei and look forward to meeting some great entrepreneurs.”

Other SparkLabs Taipei advisors include YouTube co-founder Steve Chen; Kabam co-founder and CEO Kevin Chou; and RedOctane (the producer of Guitar Hero) co-founders Charles and Kai Huang.

SparkLabs Taipei was launched last year under the leadership of Edgar Chiu, the former COO of Taipei-based app developer Gogolook (acquired by Korean Internet giant Naver in 2013) and founding general manager of Camp Mobile Taiwan, part of Naver’s mobile app development subsidiary. In an interview with TechCrunch at the time, Chiu said SparkLabs Taipei’s goal is to help prepare Taiwanese startups to enter global markets.

In a press statement, Chiu said “Jeremy Lin embodies what we look for in our entrepreneurs. Persistence, dedication, and hard work. Our team is extremely excited and proud to have him on board and join an already stellar board of advisors. Plus I’ve been a big fan when he first joined the NBA, through the craziness of ‘Linsanity’ and his continued excellence in the NBA.”

While the SparkLabs network backs tech companies from around the world, it is known in particular for its work with Asian startups. SparkLabs launched in South Korea in 2012, and since then has opened accelerator programs across the Asia-Pacific region and in Washington, D.C., including programs dedicated to financial technology, agriculture, cybersecurity and blockchain startups, and energy.

via Click on the link for the full article

YouTube quietly added free, ad-supported movies to its site

YouTube quietly added around 100 ad-supported Hollywood movies to its site, beginning last month, according to a new report from AdAge. The titles include a mix of classics like “Rocky” and “The Terminator,” as well as other family fare like “Zookeeper,” “Agent Cody Banks,” and “Legally Blonde,” among others.

Before, YouTube had only offered consumers the ability to purchase movies and TV shows, similar to how you can rent or buy content from Apple’s iTunes or Amazon Video.

Currently, YouTube is serving ads on these free movies, but the report said the company is open to working out other deals with advertisers – like sponsorships or exclusive screenings.

YouTube’s advantage in this space, compared with some others, is its sizable user base of 1.9 million monthly active users and its ability to target ads using data from Google .

The addition of a an ad-supported movies marketplace on YouTube follows Roku’s entry into this market, which began last year with the launch of its free collection of movies, called The Roku Channel.

This year, Roku has been expanding the type of content on that channel to also include things like live news from ABC News, Cheddar, Newsmax, Newsy, People TV, Yahoo and The Young Turks, and – more recently – entertainment and live sports. 

Walmart also offers its own free movies collection through Vudu, and recently teamed up with MGM on original content for the service. Tubi operates a streaming service with free, ad-supported content, too. And Amazon is rumored to be working on something similar.

 

 

via Click on the link for the full article

Blockchain gaming gets a boost with Mythical Games’ $16M Series A

Fortnite, the free multi-player survival game, has earned an astonishing $1 billion from in-game virtual purchases alone. Now, others in the gaming industry are experimenting with how they too can capitalize on new trends in gaming.

Mythical Games, a startup out of stealth today with $16 million in Series A funding, is embracing a future in gaming where user-generated content and intimate ties between players, content creators, brands and developers is the norm. Mythical is using its infusion of venture capital to develop a line of PC, mobile and console games on the EOSIO blockchain, which will also be open to developers to build games with “player-owned economies.”

The company says an announcement regarding its initial lineup of games is on the way.

Mythical is led by a group of gaming industry veterans. Its chief executive officer is John Linden, a former studio head at Activision and president of the Niantic-acquired Seismic Games. The rest of its C-suite includes chief compliance officer Jamie Jackson, another former studio head at Activision; chief product officer Stephan Cunningham, a former director of product management at Yahoo; and head of blockchain Rudy Kock, a former senior producer at Blizzard — the Activision subsidiary known for World of Warcraft. Together, the team has worked on games including Call of Duty, Guitar Hero, Marvel Strike Force and Skylanders.

Galaxy Digital’s EOS VC Fund has led the round for Mythical. The $325 million fund, launched earlier this year, is focused on expanding the EOSIO ecosystem via strategic investments in startups building on EOSIO blockchain software. Javelin Venture Partners, Divergence Digital Currency, cryptocurrency exchange OKCoin and others also participated in the round.

It’s no surprise investors are getting excited about the booming gaming business given the success of Epic Games, Twitch, Discord and others in the space.

Epic Games raised a $1.25 billion round late last month thanks to the cultural phenomenon that its game, Fortnite, has become. KKR, Iconiq Capital, Smash Ventures,Vulcan Capital, Kleiner Perkins, Lightspeed Venture Partners and others participated in that round. Discord, a chat application for gamers, raised a $50 million financing in April at a $1.65 billion valuation from Benchmark Capital, Greylock Partners, IVP, Spark Capital and Tencent. And Dapper Labs, best known for the blockchain-based game CryptoKitties, even raised a VC round this year — a $15 million financing led by Venrock, with participation from GV and Samsung NEXT.

In total, VCs have invested $1.8 billion in gaming startups this year, per PitchBook.

via Click on the link for the full article

Walmart passes Apple to become No. 3 online retailer in U.S.

Walmart has overtaken Apple to become the No. 3 online retailer in the U.S., according to a report this week from eMarketer. While Amazon still leads by a wide margin, accounting for 48 percent of e-commerce sales in 2018, Walmart – including also Sam’s Club and Jet.com – is poised to capture 4 percent of all online retail spending in the U.S. by year-end, totaling $20.91 billion.

The news of the shift in e-commerce rankings comes alongside Walmart’s strong earnings which saw the retailer reporting a 43 percent increase in online sales and upping its year-end forecast for both earnings and sales.

The company had beat Wall St.’s expectations in its fiscal third quarter, with $1.08 earnings per share instead of the expected $1.01. However, it fell short on revenue with $124.89 billion versus the $125.55 billion expected, due to currency complications, it said.

eMarketer had estimated in July that Walmart would capture a 3.7 percent e-commerce share in the U.S. this year, but increased that to 4 percent based on its quickly growing online sales.

This year, Walmart’s online sales will grow by 39.4 percent – just slightly behind the growth rate for online furniture and home goods retailer Wayfair, which is expected to see sales grow by 40.1 percent, the firm also noted.

Apple, meanwhile, will grow just over 18 percent in 2018 – a slowdown related to slowing domestic sales for smartphones and other devices. Its portion of the e-commerce market is relatively unchanged from 2017 to 2018, going from 3.8 percent to 3.9 percent.

Walmart, by comparison, is increasing its share from 3.3 percent to 4.0 percent.

But both are behind eBay, now at 7.2 percent. And they’re both vastly outranked by Amazon, which will account for a whopping 48 percent of the U.S. e-commerce market in 2018, up from 43.1 percent last year.

Amazon will take in more than $252.10 billion domestically this year, eMarketer said.

“Walmart’s e-commerce business has been firing on all cylinders lately,” said eMarketer principal analyst Andrew Lipsman, said in a statement. “The retail giant continues to make smart acquisitions to extend its e-commerce portfolio and attract younger and more affluent shoppers. But more than anything, Walmart has caught its stride with a fast-growing online grocery business, which is helped in large part by the massive consumer adoption of click-and-collect.”

via Click on the link for the full article

The Boring Company goes brick-and-mortar with The Brick Store

Elon Musk has shot out some crazy, unbelievable tweets over the last year, but he wasn’t joking about the bricks. Musk has started a company called The Brick Store LLC to produce and sell bricks, according to public documents obtained by TechCrunch.

The new company, which was founded in July, will be managed by Steve Davis, the ex-SpaceX engineer who is also running The Boring Company (TBC).

TBC is developing new tunneling and transportation technologies, and the bricks will be made from soil displaced by the company’s tunnel-boring machines. Elon Musk has tweeted that the bricks could cost as little as 10 cents each, and might even be given away to affordable housing projects.

The Brick Store’s first physical outlet will be a far cry from Tesla’s sleek, designer showrooms. Planning documents submitted to Hawthorne, a city in southwestern Los Angeles County, show a rundown stucco building about a mile from TBC and SpaceX’s headquarters. Forbidding black steel security grilles “will be utilized … to accent the entrances and windows,” TBC wrote in its application to repaint the building.

Despite these design flourishes, TBC did not select the building for its aesthetic appeal. The building — formerly housing a kitchen cabinet business — is located above an exit tunnel that TBC is digging to extract the boring machine from its first test tunnel. This is intended to showcase Loop, a proposed underground transportation system carrying people or cars on self-contained electric skates traveling at up to 150 miles per hour.

The tunnel was originally planned to stretch around two miles under public roads from a parking structure next to SpaceX. However, in April this year, TBC used a subsidiary to quietly buy the Hawthorne corner lot, which sits about halfway along the planned route, for $2 million.

In July, TBC asked Hawthorne for permission to use that lot to build an access shaft to extract its tunnel-boring machine, which, because it cannot move backwards, would otherwise have been abandoned at the end of the excavation.

The same month, Musk founded The Brick Store, whose purpose, according to state filings, is the “manufacture and sale of bricks.” TBC has already produced some structures from bricks made from tunnel spoil, and Musk tweeted yesterday that they would be used to build a watchtower at the entrance to the tunnel.

Turning tunnel waste into a valuable commodity fits in with Musk’s environmental leanings — and will save TBC from the cost of disposing all that dirt. TBC has even suggested that the bricks could potentially be used as part of the tunnel lining itself. Musk has previously said that the tunnel would officially open on December 10.

TBC did not immediately respond to requests for comment on this story.

Bricks made from everyday soil, usually called compressed earth blocks (CEB), date back to ancient times. CEBs are still used in developing countries today, and are part of building codes in California and New Mexico. But even there, the market for them is tiny — possibly because CEB buildings can be awkward to build, wire and insulate. BC has even suggested that the bricks could potentially be used as part of the tunnel lining itself.

Dwell Earth sells machines that produce CEBs by applying pressure to a mixture of earth and a little cement.

“Elon seems to have a way of bringing energy and talent to big challenges, and we are happy to see that he may be as excited about [CEBs] as we are,” Dwell Earths founder Bob de Jong told TechCrunch.

The Boring Company

TBC received around $112 million from Musk earlier this year. These funds will be used to build a number of tunnels around the country, including a Loop to connect Dodger Stadium to the subway in L.A., one that would link Chicago and O’Hare airport, as well as an ambitious commuter Loop between Washington, D.C. and Maryland.

These projects could be thwarted, or at least delayed, because of an increasingly heated trade war between the U.S. and China.

TBC lawyers wrote to the United States Trade Representative in July that the tariffs imposed by President Trump on Chinese-tunneling machine parts, among other products, would delay its projects by up to two years and mean lost job opportunities. The company asked for an exemption from the tariffs that has not yet been granted.

If there’s anyone who can re-brand dirt and build a market for CEBs, it’s Elon Musk. But even if The Brick Store’s bricks don’t raise enough money for a Mars mission or save the planet, at least they are a little more practical than a novelty “not a flamethrower.”

via Click on the link for the full article