Can America ever rebuild its neighborhoods and communities?

We talk a lot about startup ecosystems around these parts, and for good reason. Strong ecosystems have great reservoirs of talent congregated close together, a culture built around helping one another on ambitious projects, and sufficient risk capital to ensure that interesting projects have the resources to get underway.

Strip off the ecosystem layer though, and you are left with the actual, physical manifestation of a city or region — its housing, its transportation and mobility options, and its infrastructure. And if Charles Marohn’s Strong Towns: A Bottom-Up Revolution to Rebuild American Prosperity is any indication, a whole heck of a swath of America has little hope of ever tapping into the modern knowledge economy or creating the kind of sustainable growth that builds “Strong Towns.”

Across the country, Marohn sees evidence of what he dubs a “Municipal Ponzi scheme.” Cities — armed with economic development dollars and consultants galore — focus their energies and budgets on new housing subdivisions as well as far-flung, auto-dependent office parks and strip malls, all the while ignoring the long-term debt, maintenance costs, and municipal burdens they are transferring to future generations of residents. “The growth creates an illusion of wealth, a broad, cultural misperception that the growing community is become [sic] stronger and more prosperous. Instead, with each new development, they become increasingly more insolvent,” the author writes.

He provides a multitude of examples, but few are as striking as that of Lafayette, Louisiana:

As one example, the city of Lafayette, Louisiana, had 5 feet of pipe per person in 1949. By 2015, that had grown to 50 feet, an increase of 1,000%. They had 2.4 fire hydrants per 1,000 people in 1949, but by 2015, they had 51.3. This is a 2,140% increase. Over the same period, median household income in Lafayette grew just 160% from an inflation-adjusted $27,700 to $45,000. And if national trends hold locally in Lafayette, which they almost certainly do, household savings decreased while personal debt skyrocketed. Lafayette grew its liabilities thousands of times over in service of a theory of national growth, yet its families are poorer.

The author contextualizes just how weird the modern American suburb and community is in the grand sweep of human history, where co-location, walkability, and human-scale density weren’t just norms, but necessities. The lack of thoughtful, dynamic planning that allows cities to adapt and evolve over time eventually comes to tear at the vitality of the town itself. “Only the richest country in the world could build so much and make such poor use of it.”

Marohn has spent decades in urban planning and also runs Strong Towns, a non-profit advocacy organization that tries to create more sustainable cities by attempting to guide the urban planning conversation toward better models of adaptable growth. He brings an authority to the topic that is heartening, and the book is absolutely on the right vector on how to start to think about urban planning going forward.

In addition to his discussions around municipal finance, he makes the critical connections between urban planning and some of the most pressing challenges facing America today. He notes how the disintegration of tight-knit communities has exacerbated issues like drug abuse and mental health, and how the focus on big-box retail development has undermined smaller-scale entrepreneurship.

Even more heartening in some ways is that the solutions are seemingly so easy. For example, one is to simply account for the true, long-term costs of infrastructure and economic development dollars, properly accounting for “value per acre.”

Yet, the flaws in the book are manifold, and I couldn’t help but shake my head on numerous occasions at the extent to which movements to improve urban planning always seem to shudder on the weight of reality.

Nowhere are those flaws more glaring than over the actual preferences of the residents of these cities themselves. As anyone who lives in San Francisco or Palo Alto understands, there is a serious contingent of NIMBYs who consistently vote against housing and density regardless of its effects on inequality or urban quality. Kim-Mai Cutler wrote one of the definitive pieces on this topic five years ago right here at TechCrunch, and yet, all these years later, the same dynamics still animates local politics in California and across the world.

The prescriptions offered in Strong Towns are not only correct, they are almost incontestable. “Instead of prioritizing maintenance based on condition or age, cities must prioritize based on financial productivity,” Marohn writes. Public dollars should be spent on the highest-impact maintenance projects. Who is really against that?

But, people are, as evidenced by city council meetings all across the United States and the simple ground truth that cities don’t spend their dollars wisely. Whether your issue is housing, or climate change, or economic development, or inequality, the reality is that residents vote, and their voices are heard. That leads to Marohn writing:

As a voter, as a property owner within a municipal corporation, as a person living cooperatively with my neighbors in a community, I can respect that some people prefer development styles that are financially ruinous to my city. My local government should not feel any obligation to provide those options, particularly at the price points people expect.

Yet, what should one do if 70-80% of a city’s voters literally want to jump off the proverbial cliff?

Ultimately, should cities be responsive to their own voters? If San Francisco refuses to build more transit-oriented development and in the process exacerbates the climate change literally setting the Bay Area on fire, shouldn’t the damn voters burn straight to the ground?

Peak California liberalism is painting a mural honoring a 16 year-old climate activist within a year of her rise to prominence while spending the last 20 years refusing to build the dense multifamily housing we need to actually reduce our impact on the environment. https://t.co/9w56sbtNRy

— Strang Gang (@ryxcommar) November 9, 2019

Marohn, who talks over several pages of his political evolution from Republican to complex libertarian communalist, never faithfully addresses this core problem with the Strong Towns thesis, or indeed, the entire activism around urban politics today. “American culture spends a lot of time debating what should be done, but hardly any time discussing who should make the decision,” he writes. But we do — we did — discuss who makes the decisions, and our political systems actively respond to those decision-makers: local voters.

American towns are in a perilous state – and that is precisely what people demanded and received. Marohn criticizes the planning profession for its lack of municipal sustainability, but seemingly is willing to substitute one group of far-flung experts with another to override the locals, presumably just with a different (better?) set of values.

In the final analysis, Strong Towns the book gets the fundamentals right. But will it change minds? I’m doubtful. It certainly doesn’t offer a clear guidebook on how local leaders can start to educate their neighbors and build the kinds of voter blocs required to get local, democratic change on these issues. Ultimately, the book feels like a smaller footnote to the worthy work of Strong Towns the organization, which ultimately will drive the activity needed to build change on these issues.

Week in Review: Airbnb is just the beginning

Hey everyone. Thank you for welcoming me into you inbox yet again.

I got some awesome responses to the #DeleteLinkedIn newsletter last week, a few dozen emails (some of them angry) and plenty of tweets. Looking forward to chatting with some of you soon. On that note, I’m currently in China for a TechCrunch event that we’re having in Shenzhen and will be taking some time offline to travel a bit so I won’t be arriving in your inboxes the next two weeks. Week in Review will be back in your inboxes the weekend after Thanksgiving so you’ll have to savor this newsletter until then.

If you’re reading this on the TechCrunch site, you can get this in your inbox here, and follow my tweets here.


The big story

If there’s been a collective theme to some of the tech backlash of the past couple years, it’s been an evolving vision towards platform responsibility.

Social media platforms have earned the lion’s share of this discussion to date. This has largely been due to the political landscape and gripes with both liberals and conservatives for how the site handles content policing. The prevailing libertarian view that tech platforms weren’t responsible for what was enabled by their platforms has fallen out of vogue.

What continues to surprise me is how little accountability or expectations there still seems to be for marketplace platforms. Speech is a crucial part of the internet, but so is buying and selling and it shocks me how big some startups have been able to get without delivering some basic buyer protections.

http://www.twitter.com/lucasmtny/1190027153099952128?s=20

Through some great investigations from the Wall Street Journal, we’ve seen how fast and loose Amazon has been playing with third-party sellers getting free reign on the site. There have been countless stories of scammers infiltrating sites like Airbnb and eBay and operating in grey areas that allow them to rip off buyers. Last week, a reporter at Vice delivered a scathing deep dive into a scam she fell victim to on Airbnb’s platform.

This week, Airbnb announced that by next year they are pledging to verify all of their listings, something that seems more than a little overdue. Standing behind the properties being booked on their platform was seemingly the last box to check before driving to the IPO hoop.

More from our story:

Airbnb  properties will soon be verified for accuracy of photos, addresses, listing details, cleanliness, safety and basic home amenities, according to a company-wide email sent by Airbnb co-founder and chief executive officer Brian Chesky on Wednesday.

Airbnb is just another highly valued startup that has been trying to take the past of least resistance to outsized future value. Verifying properties is a difficult issue to brace. Sellers are certainly not the only scammers on Airbnb, and buyers abusing this new system is a guarantee. But keeping both sides in some sort of satisfaction equilibrium is Airbnb’s messy, god-given task.

Airbnb has garnered more grumblings than most due to bad customer experiences, but it’s just a harbinger of what comes next. 2020 being a presidential election year in the U.S. means that the public might still be too busy with lambasting Zuckerberg to give marketplaces their due watchful eye in the near term, but the bell is tolling for these marketplaces and it’d be wise for them to pay attention to the writing on the wall.

Send me feedback
on Twitter @lucasmtny or email
[email protected]

On to the rest of the week’s news.

GettyImages 1005682070 1

(Photo by Justin Sullivan/Getty Images)

Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context:

  • Twitter’s Saudi Arabian infiltration
    One of the wilder stories this week was how Saudi Arabia reportedly lifted sensitive contact info from Twitter via employees at the company that they paid off. There’s a lot in this saga and while Twitter seems to have done most things right, it is a pretty nightmarish scenario.
  • T-Mobile and Sprint get hitched
    The telecom marriage of two of the United States top four carriers cleared its last major hurdle as the FCC gave the deal its blessing. There’s still some residual legal hurdles for the two to wrap up in good faith, but this deal is done.
  • Adobe makes good on a promise
    The promises of tablet computing have always been a little ambitious in terms of timing, but Photoshop is finally arriving on the iPad and with that, one decade-long wish list item has been realized.

GAFA Gaffes

How did the top tech companies screw up this week? This clearly needs its own section, in order of badness:

  1. California isn’t happy with Zuckerberg:
    [California accuses Facebook of ignoring subpoenas in state’s Cambridge Analytica investigation]
  2. Google’s board is investigating some executive impropriety:
    [Alphabet’s board is investigating execs over claims of sexual harassment and other misconduct]

Disrupt Berlin

DISRUPT SF 530X350 V2 berlin

It’s hard to believe it’s already that time of the year again, but we just announced the agenda for Disrupt Berlin and we’ve got some all-stars making their way to the stage. I’ll be there this year, get some tickets and come say hey!

Sign up for more newsletters in your inbox (including this one) here.

Two security researchers earned $60,000 for hacking an Amazon Echo

Two security researchers have been crowned the top hackers in this year’s Pwn2Own hacking contest after developing and testing several high profile exploits, including an attack against an Amazon Echo.

Amat Cama and Richard Zhu, who make up Team Fluoroacetate, scored $60,000 in bug bounties for their integer overflow exploit against the latest Amazon Echo Show 5, an Alexa-powered smart display.

The researchers found that the device uses an older version of Chromium, Google’s open-source browser projects, which had been forked some time during its development. The bug allowed them to take “full control” of the device if connected to a malicious Wi-Fi hotspot, said Brian Gorenc, director of Trend Micro’s Zero Day Initiative, which put on the Pwn2Own contest.

The researchers tested their exploits in a radio-frequency shielding enclosure to prevent any outside interference.

“This patch gap was a common factor in many of the IoT devices compromised during the contest,” Gorenc told TechCrunch.

Amat Cama (left) and Richard Zhu (right), who make up Team Fluoroacetate. (Image: ZDI)

An integer overflow bug happens when a mathematical operation tries to create a number but has no space for it in its memory, causing the number to overflow outside of its allotted memory. That can have security implications for the device.

When reached, Amazon said it was “investigating this research and will be taking appropriate steps to protect our devices based on our investigation,” but did not say what measures it would take to fix the vulnerabilities — or when.

The Echo wasn’t the only internet-connected device at the show. Earlier this year the contest said hackers would have an opportunity to hack into a Facebook Portal, the social media giant’s video calling-enabled smart display. The hackers, however, could not exploit the Portal.

Original Content podcast: Apple’s star-studded ‘Morning Show’ gets off to a bumpy-but-promising start

We weren’t sure what to expect from the launch of Apple’s new subscription streaming service. There were reports that the company was committed to staying family friendly, rather than exploring the adult content and creative liberties that both premium cable and streaming can offer. Plus, most of the trailers were pretty underwhelming.

For our 100th (!) episode, your regular Original Content podcast hosts are joined by TechCrunch writer Sarah Perez to discuss all the Apple TV+ shows we’ve sampled so far — “For All Mankind,” “See,” “Dickinson” and even “Snoopy in Space.” And we were pleasantly surprised by what we found.

Just a few episodes in, “For All Mankind” (an alternate history in which the Soviet Union won the race to the moon) and “See” (set in a world where everyone has lost the sense of sight) have turned some of us into fans. And even “Dickinson” — which has the seemingly impossible task of telling Emily Dickinson’s story using modern slang— turns out to be a strange and watchable experiment.

We save our most extensive discussion for the most high-profile title of the bunch: “The Morning Show,” which stars Jennifer Aniston as Alex Levy, longtime host of an AM news show also called “The Morning Show,” and Reese Witherspoon as local news anchor Bradley Jackson, whose confrontation at a coal mine protest ends up going viral right as Alex’s show implodes, thanks to sexual misconduct allegations against her longtime co-host Matt Kessler (played Steve Carell).

Obviously, the show has star power, and the leads are supported by talented and familiar faces like Billy Crudup, Mark Duplass and Gugu Mbatha-Raw.

The performances are all strong, with Aniston and Witherspoon carrying the show: Aniston convincingly portrays a woman who’s both devastated by the revelations of her on-screen partner’s behavior and desperate to seize the opportunity that these revelations create. Witherspoon, meanwhile, adds complex shading to perhaps her trademark role as a spunky, ambitious upstart.

The writing, on the other hand, is a bit uneven. There’s an unfortunate tendency towards speechifying about big themes like The Role of Journalism in America — at times, it feels almost Sorkin-esque, but without the eloquence or snappiness of Aaron Sorkin’s best dialogue.

So far, though, the speeches have been balanced out by strong characterization and some satisfyingly dramatic twists.

You can listen in the player below, subscribe using Apple Podcasts or find us in your podcast player of choice. If you like the show, please let us know by leaving a review on Apple. You can also send us feedback directly. (Or suggest shows and movies for us to review!)

And if you want to skip ahead, here’s how the episode breaks down:
0:00 Intro
0:30 Apple TV+ roundup
27:02 “The Morning Show” review (spoiler-free)

Watch MIT’s ‘mini cheetah’ robots frolic, fall, flip – and play soccer together

MIT’s Biomimetics Robotics department took a whole herd of its new ‘mini cheetah’ robots out for a group demonstration on campus recently – and the result is an adorable, impressive display of the current state of robotic technology in action.

The school’s students are seen coordinating the actions of 9 of the dog-sized robots running through a range of activities, including coordinated movements, doing flips, springing in slow motion from under piles of fall leaves, and even playing soccer.

The mini cheetah weights just 20 lbs, and its design was revealed for the first time earlier this year by a team of robot developers working at MIT’s Department of Mechanical Engineering. The mini cheetah is a shrunk-down version of the Cheetah 3, a much larger and more expensive to produce robot that is far less light on its feet, and not quite so customizable.

The mini cheetah was designed for Lego-like assembly using off-the-shelf part, as well as durability and relative low cost. It can walk both right-side up, and upside down, and its most impressive ability just might be the way it can manage a full backflip from a stand-still. It can also run at a speed of up to 5 miles per hour.

Researchers working on the robot set out to build a team of them after demonstrating that first version back in May, and are now working with other teams at MIT to loan them out for additional research.

This Week in Apps: Photoshop for iPad bombs, Google Play’s new rewards program, iOS bug fixes

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support, and the money that flows through it all. What are the developers talking about? What Do app publishers and marketers need to know? How is international politics playing out in the App Store? What apps is everyone using?

As November kicks off, we’re looking at a number of big apps launches from Microsoft and Adobe — as well as what went wrong. We’re also looking at the iOS bug-squashing release, a bunch of data about app install trends around the world, Google Play’s new loyalty program and what it means for developers, the continued scrutiny of Chinese apps by the U.S. government, and more.

Fast Facts

eMarketer remindS us that it recently put out a big report on app installs with a ton of insights. It’s actually been live for a few months, but ICYMI, here are some of the key data points and highlights:

  • The average iPhone user in the U.S. downloaded 47 apps in 2018, up from 44 in 2017.
  • The average number of apps installed is rising — up 15% from 2016. In the U.S., Japan, South Korea, and Australia, users had more than 100 apps downloaded in 2018.
  • Smartphone users spend the most time using their top 5 apps. In 2017, the top 5 accounted for 87% of usage. Now (Apr. 2019) it’s 83%. The No. 1 app had a 49% share of the time spent, now it’s 44%.
  • The number of smartphone users in the U.S. will grow just 3% in 2019, compared with 13.2% in India and 12.1% in Indonesia.
  • Related, app downloads grew 165% in India from 2016 to 2018. In China, 70%. In Indonesia, 55%. And in Brazil, 25%. The U.S. app downloads grew just 5%.
  • In June 2019, the App Store had 1.8 million apps compared with Google Play’s 3.1 million.
  • 43% of iOS app install referrals came from Facebook properties, and only 6.6% came from Google properties.
  • Apple Search Ads drove 12% of non-organic installs in May 2019.
  • In-app video ads outperform display ads. Install-to-register rates for video were 35.1% in Q1
    2019 on the Liftoff network, compared with 28.5% for display ads.
  • App engagement drop-off rates after day one are the biggest in shopping apps. (25% engagement after the first day, but 8% at 30 days). Travel also sees a big drop-off. (20% after the first day and 6% after 30 days).

Headlines

iOS Bug Squashing: Apple fixed the iOS bug that killed your background apps. Apple this week finally squashed a very annoying bug in iOS 13 that made the OS overly aggressive about killing background apps and tasks. Apps like Safari, YouTube, Overcast and others were impacted, leading users to lose emails or the video they were watching just when they switched away for a few seconds. What Apple can’t fix is a growing concern that Apple has “lost the plot” following a series of extremely buggy software updates across its product line, which made users hesitant to upgrade to macOS Catalina, and bricked people’s HomePods.

Google admits it can’t secure the Play Store on its own: Google this week announced partnerships with security firms ESET, Lookout, and Zimperium to form what it has branded the “App Defense Alliance.” The goal, the company says, is to unite the security industry to fight malicious apps across Android’s ecosystem of 2.5 billion devices. Basically, Google will integrate its own detection systems with each partner’s scanning engine to help it uncover potential risks and threats. However, the fact that Google is now essentially outsourcing security to a partner ecosystem is an admission of failure, to some extent, about its abilities to keep the Play Store free from bad actors on its own. (But of course, we all knew that already, right?)

Photoshop for iPad is tanking: Adobe released its most important mobile app ever with this week’s launch of Photoshop for iPad. But fans panned the app because it’s missing several key features. Like RAW support! The app now has 2 stars out of 5…yikes. So what went wrong?

To read more, subscribe to Extra Crunch.

Startups Weekly: Airbnb’s growing pains

Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I wrote about Uber’s new “money” team. Before that, I told you about how SoftBank is screwing up.

Remember, you can send me tips, suggestions and feedback to [email protected] or on Twitter @KateClarkTweets. If you don’t subscribe to Startups Weekly yet, you can do that here.


Brian Chesky, chief executive officer and co-founder of Airbnb Inc. (Michael Nagle/Bloomberg via Getty Images)

Airbnb’s growing up

Following the death of five people at a Halloween party hosted at a California Airbnb rental, and a scathing Vice report outlining Airbnb’s failure to prevent nation-wide scams, the company says it will begin verifying all seven million of its listings.

Airbnb properties will soon be verified for accuracy of photos, addresses, listing details, cleanliness, safety and basic home amenities, according to a company-wide email sent by Airbnb co-founder and chief executive officer Brian Chesky on Wednesday. All rentals that meet the company’s new standards will be “clearly labeled” by December 15, 2020, he notes. Beginning next month, Airbnb will rebook or refund guests who check into rentals that do not meet the new accuracy standards.

These changes, outlined fully here, come as Airbnb preps for an IPO or a direct listing slated for 2020. The company was in need of some serious additions to its barely-there security measures and it also needed to make a grand gesture (or two) to Wall Street following multiple PR disasters over the last two weeks. Airbnb’s response to the recently-highlighted problems will help determine how it fares on the public market and given its quick and seemingly comprehensive response, money managers may be pleased.


38818582982 37b9719635 o

TechCrunch Disrupt Berlin 2017 in Berlin on 5 December 2017. ImageXDante for TechCrunch

Meet me in Berlin

The TechCrunch team is heading to Berlin again this year for our annual event, TechCrunch Disrupt Berlin, which brings together entrepreneurs and investors from across the globe. We announced the agenda this week, with leading founders including Away’s Jen Rubio and UiPath’s Daniel Dines. Take a look at the full agenda.

I will be there to interview a bunch of venture capitalists, who will give tips on how to raise your first euros. Buy tickets to the event here.


VC deals

Microsoft uses AI to diagnose cervical cancer faster in India

More women in India die from cervical cancer than in any other country. This preventable disease kills around 67,000 women in India every year, more than 25% of the 260,000 deaths worldwide.

Effective screening and early detection can help reduce its incidence, but part of the challenge — and there are several parts — today is that the testing process to detect the onset of the disease is unbearably time-consuming.

This is because the existing methodology that cytopathologists use is time consuming to begin with, but also because there are very few of them in the nation. Could AI speed this up?

At SRL Diagnostics, the largest chain to offer diagnostic services in pathology and radiology in India, we are getting an early look of this. Last year, Microsoft partnered with SRL Diagnostics to co-create an AI Network for Pathology to ease the burden of cytopathologists and histopathologists.

SRL Diagnostics receives more than 100,000 Pap smear samples every year. About 98% of these samples are typically normal and only the remaining 2% samples require intervention. “We were looking for ways to ensure our cytopathologists were able to find those 2% abnormal samples faster,” explained Dr. Arnab Roy, Technical Lead for New Initiatives & Knowledge Management at SRL Diagnostics.

Cytopathologists at SRL Diagnostics studied digitally scanned versions of Whole Slide Imaging (WSI) slides, each comprising about 300-400 cells, manually and marked their observations, which were used as training data for Cervical Cancer Image Detection API.

A digitally scanned version of a Whole Slide Imaging (WSI) slide, which is used to train the AI model

Then there was the challenge of subjectivity. “Different cytopathologists examine different elements in a smear slide in a unique manner even if the overall diagnosis is the same. This is the subjectivity element in the whole process, which many a time is linked to the experience of the expert,” reveals Dr. Roy.

Manish Gupta, Principal Applied Researcher at Microsoft Azure Global Engineering, who worked closely with the team at SRL Diagnostics, said the idea was to create an AI algorithm that could identify areas that everybody was looking at and “create a consensus on the areas assessed.”

Cytopathologists across multiple labs and locations annotated thousands of tile images of cervical smear. They created discordant and concordant notes on each sample image.

“The images for which annotations were found to be discordant — that is if they were viewed differently by three team members — were sent to senior cytopathologists for final analysis,” Microsoft wrote in a blog post.

This week, the two revealed that their collaboration has started to show results. SRL Diagnostics has started an internal preview to use Cervical Cancer Image Detection API. The Cervical Cancer Image Detection API, which runs on Microsoft’s Azure, can quickly screen liquid-based cytology slide images for detection of cervical cancer in the early stages and return insights to pathologists in labs, the two said.

The AI model can now differentiate between normal and abnormal smear slides with accuracy and is currently under validation in labs for a period of three to six months. It can also classify smear slides based on the seven-subtypes of cervical cytopathological scale, the two wrote in a blog post.

During the internal preview period, the exercise will use more than half-a-million anonymized digital tile images. Following internal validation, the API will be previewed in external cervical cancer diagnostic workflows, including hospitals and other diagnostic centers.

“Cytopathologists now have to review fewer areas, 20 as of now, on a whole slide liquid-based cytology image and validate the positive cases thus bringing in greater efficiency and speeding up the initial screening process,” Microsoft wrote.

“The API has the potential of increasing the productivity of a cytopathology section by about four times. In a future scenario of automated slide preparation with assistance from AI, cytopathologists can do a job in two hours what would earlier take about eight hours!” Dr. Roy said.

SRL Diagnostics-Microsoft consortium said they are hopeful their APIs could find application in other fields of pathology such as diagnosis of kidney pathologies and in oral, pancreatic and liver cancers. The consortium also aims to expand its reach with tie-ups with private players and governments and expand the reach of the model even in remote geographies where the availability of histopathologists is a challenge.

The announcement this week is the latest example of Microsoft’s ongoing research work in India. The world’s second most populous nation has become a test bed for many American technology companies to build new products and services that solve local challenges as they look for their next billion users worldwide.

Last week, Microsoft announced its AI project was helping improve the way driving tests are conducted in India. The company has unveiled a score of tools for the Indian market in the last two years. Microsoft has previously developed tools to help farmers in India increase their crop yields and worked with hospitals to prevent avoidable blindness. Last year, the company partnered with Apollo Hospitals to create an AI-powered API customized to predict risk of heart diseases in India.

Also last year, the company also worked with cricket legend Anil Kumble to develop a tracking device that helps youngsters analyze their batting performance. Microsoft has also tied up with insurance firm ICICI Lombard to help it process customers’ repair claims and renew lapsed policies using an AI system.

Roku puts a remote on your wrist with new Apple Watch app

The Roku remote is coming to your wrist. The company announced today the launch of an Apple Watch app that lets you control your Roku device, including Roku media players and select Roku TVs, with a tap — just like the Roku mobile app, but sized for your wrist.

Considered the limited screen real estate, the app is fairly robust in terms of its feature set.

In addition to the expected media controls — like the ability to play and pause what you’re watching –, the app also offers a home button, the select button (“OK”), a back button and directional arrows. And it includes a way to launch your favorite channels, which are organized in order of the most recently launched to make them easier to access. That way, if you always watch Netflix, you don’t have to scroll down to find it.

In addition, the tiny remote app includes voice search functionality. To activate, you just tap the voice icon, then say things like “Launch Hulu” or “search for comedies,” or even change sources, like “switch to HDMI 1” for your Roku TV, the company explains. This will work on Apple Watch versions 1 through 5.

And if you have a Roku Ultra or a Roku TV with the Remote Finder functionality which uses an audible chime to locate a lost remote control in the couch cushions, you can also use the Roku Apple Watch app to signal your Roku remote to start making a noise.

All these features will be familiar to anyone who has already used the Roku remote for smartphones, as the Apple Watch app is just a miniaturized version. The only thing it’s missing is the ability to stream The Roku Channels’ free movies, but obviously that’s not a feature you’ll want on your wristwatch. (I mean…right?)

To get the Roku Apple Watch app, you’ll need to download or update your Roku iOS app to the latest version (6.1.3), and the app will appear on your Watch as long as you haven’t disabled “Automatic App Install” in the Watch’s Settings.

China’s news and data site 36Kr tumbles in its stock market debut

36Kr, a Chinese news and data website that tracks startups, fell 10% in its Nasdaq debut on Friday.

The disappointing debut followed 36Kr’s decision to slash the size of its offering from 3.6 million shares to 1.4 million and pricing its shares at $14.5, the bottom of marketed range. This meant that the firm, which had initially aimed to raise as much as $100 million, settled for $20 million. A company top executive said that even as the offering is smaller, it has great confidence in its stock’s future performance.

The nine-year-old Chinese company’s decision to list in the U.S., instead of doing so in Hong Kong especially during the ongoing trade war between the two nations also surprised many.

In an interview with Yahoo Finance on Friday, 36Kr founder and co-chairman Cheng-Cheng Liu said the company decided to go public on Nasdaq because “our team thinks the U.S. stock market is one of the most matured markets in the world. Also, we have business outside of China.” In China itself, however, the company has yet to secure license to operate as an internet news service.

In its prospectus, the company wrote, “lack of Internet news information license may expose us to administrative sanctions, which would materially and adversely affect our business, results of operations and financial condition.”

36Kr provides financials on companies, market updates, and commentaries. It maintains an English website as well and makes money through ads and multiple subscription offerings. The company could look to expand its business in North America in the future, said Liu. He also said that the company is betting that “the U.S. and China will be friends again.”

Liu said the recent instances such disappointing debut of Uber and tremendous fall of We, which postponed its public debut, should not affect 36Kr’s performance because unlike other companies 36Kr is “not cash burning” and has been profitable. In the first half of 2019, 36Kr generated a revenue of $29.4 million, a 179% year-over-year increase.

The company, often called “Crunchbase* of China,” counts Ant Financial, Matrix Partners China, e.ventures, and Infinity Ventures among its investors and has raised over $100 million in venture fund. Crunchbase, which late last month raised $30 million, started as part of TechCrunch and has since spun out. Also worth noting, 36Kr began as “TC Chinese” (link in Chinese) even though it had no affiliation with TechCrunch and plagiarized a number of TechCrunch articles (link in Chinese).

Instagram to test hiding Like counts in US, which could hurt influencers

“We will make decisions that hurt the business if they help people’s well-being and health” says Instagram’s CEO Adam Mosseri. To that end, next week Instagram will expand its test of hiding Like counts from everyone but a post’s creator to some users in the United States. But there are major questions about whether the change will hurt influencers.

Mosseri revealed the plan at the Wired25 conference today, saying Instagram “We have to see how it affects how people feel about the platform, how it affects how they use the platform, how it affects the creator ecosystem.”

Instagram’s CEO explained that “The idea is to try to depressurize Instagram, make it less of a competition, and give people more space to focus on connect ing with the people they love and things that inspire them.” The intention is to “reduce anxiety” and “reduce social comparison”.

Elsewhere during the talk that also featured actor and CEO Tracie Ellis Ross, Mosseri discussed Instagram’s growing interest in shopping, and how it can provide new revenue streams to influencers. He also described Instagram’s three-pronged approach to well-being where it identifies and addresses acute problems such as hate speech, finds positions where it can lead as with fighting bullying, and rethinks fundamentals of how the platform works as with Like count hiding.

Instagram began testing this in April in Canada and expanded it to Ireland, Italy, Japan, Brazil, Australia, and New Zealand in July. Facebook started a similar experiment in Australia in September.

While it seems likely that making Instagram less of a popularity contest might aid the average user, Instagram has to be mindful that it doesn’t significantly decrease creators’ or influencers’ engagement and business success. These content makers are vital to Instagram’s success, since they keep their fan bases coming back day after day, even If  users’ friends are growing stale.

A new study by HypeAuditor reported by Social Media Today found that influencers across tiers of follower counts almost unanimously saw their Like counts fall in countries where the hidden Like count test was active. Likes fell 3% to 15% in all the countries for influencers with 5,000 to 20,000 followers.

Only in Japan, and only for influencers with 1,000 to 5,000 or 100,000 to 1 million followers did the change lead to a boost in Likes — of about 6% in both groups. Meanwhile, influencers saw the biggest loss of Likes in the Brazilian market. Those trends could relate to how users in certain countries might feel more comfortable Liking something if they don’t know who else is too, while in other nations users might rely on more herd mentality to know what to Like.

If Instagram finds the impact of the test to be too negative on influencers, it may not roll out the change. While Mosseri stated the company wasn’t afraid to hurt its own bottom line, impairing the careers of influencers may not be acceptable unless the positive impacts on well-being are significant enough.

Instagram CEO Announces Platform Will Test Hiding Likes in the US

WATCH: Instagram CEO Adam Mosseri announces that the platform will start hiding likes for US audiences starting next week. It's the latest step in Instagram’s quest to become the safest place on the internet. Learn more: https://wired.trib.al/nbNQ7nb

Posted by WIRED on Friday, November 8, 2019

Relocating Indonesian capital will impact nation’s startup ecosystem

Hugh Harsono
Contributor

Hugh Harsono is a former financial analyst currently serving as a U.S. Army officer.

Recently reelected, Indonesian President Joko Widodo announced a desire to move the nation’s capital from Jakarta to the East Kalimantan region, citing environmental concerns, the most exigent of these being the fact that Jakarta is literally sinking due to the uncontrolled extraction of groundwater. Widodo said he wished to separate Indonesia’s government from its business and economic hub in Jakarta.

However, what would a move from Jakarta do to Indonesia’s burgeoning startup economy?

Shifting administrative governmental hubs

According to Widodo, studies have determined that the best site for the proposed new capital is between North Penajam Paser and Kutai Kertanegara, both located in East Kalimantan. The basis of this selection is due to studies highlighting the region’s relative protection from natural disasters, especially when compared to other regions. This would definitely be a benefit for the governmental heart of Indonesia, ensuring continuous administrative functions in a disaster-prone region. Other governments have separated administrative centers from their economic hubs with varying degrees of success, with some examples being Brazil’s creation of Brasília, as well as Korea’s projected move from Seoul to Sejong.

What is most interesting to note from prior examples is that these newer branched-out cities are non-surprisingly, heavily government-centric. In Brasília, roles tied to the government make up nearly 40% of all jobs, while in Sejong, a lack of facilities like public transit and commercial mall space cause many to commute into Sejong for government work, instead of permanently settling in the area. Given the semi-undeveloped nature of East Kalimantan, these anecdotes are quite troubling if the government is actually moving to North Penajam Paser or Kutai Kertanegara.

These facts raise the question of economic impacts of such governmental moves. In fact, one may even opine that while these moves do allow for governmental growth, ultimately, they may hurt the country economically due to a divestment between both government and economic hubs. In this specific instance, it is most important to analyze the impact of such a move on Indonesia’s startup economy, as the nation is one the world’s leaders in startup growth.

Indonesia’s startup economy

Indonesia has emerged as a startup hub within Southeast Asia in recent years, with its population of over 260 million marking it as the world’s fourth-most populous country. Additionally, Indonesia’s mobile-first population has enabled the full embrace of the internet era, with 95% of all internet users in Indonesia connected to the web via a mobile device.

Similarly, startup growth has boomed in the island archipelago, with several Indonesian-based unicorns disrupting local, regional, and global economies. Softbank-backed ecommerce giant Tokopedia is currently in talks for a pre-IPO funding round, while emerging super-app Gojek controls significant portions of the ride-sharing industry in Asia, simultaneously expanding into separate industries to include digital payments, food delivery, and even video-streaming. Additionally, online travel portal Traveloka (in which Expedia has a minority stake) has recently entered the financial services space, furthering its impact within Asia. These specific examples of high-growth startups demonstrate a population hungry for innovation, further driving the developing startup economy.

“Trump should not be our president” says Ex-Facebook CPO Chris Cox

Chris Cox’s motivational speeches were at the heart of Facebook’s new employee orientation. But after 14 years at the social network, the chief product officer left in March amidst an executive shake-up and Facebook’s new plan to prioritize privacy by moving to encrypt its messaging apps. No details on his next projects were revealed.

Now the 37-year-old leader will be putting his inspirational demeanor and keen strategy sense to work to protect the environment and improve the government. Today at Wired25 conference, Cox finally shared more about his work advising political technology developer for progressives Acronym, and climate change-tracking satellite startup Planet Labs. He also explained more about the circumstances of his departure from the social network’s C-suite.

SAN FRANCISCO, CALIFORNIA – NOVEMBER 08: Chris Cox speaks onstage at the WIRED25 Summit 2019 – Day 1 at Commonwealth Club on November 08, 2019 in San Francisco, California. (Photo by Phillip Faraone/Getty Images for WIRED)

Leaving Facebook

On how he felt leaving Facebook, Cox said, “part of the reason I was okay leaving was that after 2016 I’d spent a couple years building out a bunch of the teams that I felt were most important to sort of take the lessons that we learned through some of 2016 and start to put in place institutions that can help the company, be more responsible and be a better communicator on some of the key issues.”

LIVE: Chris Cox, Former Chief Product Officer, Facebook, in conversation with WIRED's Lauren Goode

LIVE: We're live with Chris Cox, former Chief Product Officer, Facebook, from our #WIRED25 summit in conversation with WIRED senior writer Lauren Goode.

Posted by WIRED on Friday, November 8, 2019

As for what specifically drove him to leave, Cox explained that, “It wasn’t something where I felt I wanted to spend another 13 years on social media. Mark and I saw things a little bit differently . . . I think we are still investigating as an industry, how do you balance protecting the privacy of people’s information and continuing to keep people safe,” Cox said.

On whether moving toward encryption was part of that, he said he thinks encryption is “great: and that “It offers an enormous amount of protection,” but noted “it certainly makes some of those things more complicated” on the privacy versus safety balance. He complemented Facebook’s efforts to build ways of catching bad actors even if they’re shielded by encryption. That includes digital literacy initiatives in Brazil and India ahead of elections, and offering forwarding systems for sending questionable information to fact checkers. “I think there are pros and cons with these systems and I’m not a hard-liner on any one of them,” Cox said, and noted that what Facebook is building is “resonant with what people want.”

Cox was asked about the major debate about whether Facebook should allow political advertising. “We think political advertising can be good and helpful. It often favors up and comers versus incumbents.” Still, on fact-checking, he said, “I’m a big fan,” even though Facebook isn’t applying that to political ads. He did note that “I think the company should investigate and is investigating micro targeting . . . if there’s hundreds of variants being run of the creative then it’s tricky to get your arms around what’s being said.” He also advocated for more context in the user interface distinguishing political ads. 

Chris Cox speaks at Wired25

Cox’s next projects

Since leaving Facebook, Cox has joined the advisory board of a group called Acronym, which is helping to build out the campaign and messaging technology stack for progressive candidates. “This is an area where my perception is that the progressives have been behind on the ability to develop and use as a team infrastructure that helps you have a good voter file, how to develop messaging — just basic politics in 2019.”

Wired’s Lauren Goode asked if he was aligning himself with progressives, taking a political stance, and whether he could do that while still at Facebook. “Absolutely not,” Cox responded.And why is that I think when you’re in a very senior role at a platform, you have a duty to be much more neutral in your politics.”

He then came out with a bold statement enabled by his independence. “I think Trump should not be our president. The other thing I care a lot about right now is climate change and he’s not going to help us there.”

That led to Cox discussing that he’s also been working to advise San Francisco startup Planet Labs, which is using satellite imagery to track climate change. “The vision was to build these small, about shoebox-size satellites with solar panel panel wings and have a fleet of them in space, which is real-time imaging the Earth.”

With that data, Cox explained you can track wildfires, deforestation, coal power plants, methane gas and more. Then, “You can start to contribute to having a health system, where you are basically imaging the Earth every hour, and then you’re creating some public data set with tools that plug into decision makers, banks, insurance companies, policymakers, investors, journalists, students…”

Asked about big tech’s responsibility for addressing climate change, Cox said “I think at the very least it’s making a commitment to being carbon-negative.”

Acronym and Planet Labs’ work intertwines, as Cox believes climate data proves the need for someone new in the Oval Office. While Cox didn’t discuss it onstage, Wired listed him as part of Shasta Group, which is Cox’s own vehicle for contributing to these projects. Still, he’s not ready to launch a full-fledged company of his own in politics and climate. “I’m still so young at this field that I don’t have enough confidence in my own mental model of the world.”

Cox concluded that by harnessing big company’s employees and having team leaders put more attention on climate change, “I do think tech can lead.” 

Inside StockX’s authentication center

Joshua Luber runs a sneaker empire valued at more than $1 billion, but he thinks they’re just now scratching the surface. The consumer marketplace recently expanded to include a fifth category (collectibles). “It’s an evolution of eBay that works similar to the stock market,” Luber states, “but at the core, it’s around the concept of true market price.” 

We visited StockX’s 15,000-square-foot facility in Detroit to get a peek into their authentication process, and sat down with Luber to chat about humble beginnings, business expansion and sneakers.

Kenzie Academy is scaling up a coding program for ‘the heartland’

The crowded landscape of programs teaching non-technical people to become software developers has been a proving ground for a new model of education financing: income share agreements (ISAs). With an ISA, students avoid paying tuition upfront or taking out private loans, instead paying a percentage of their income for a time after graduation after they’re earning a minimum income.

The model aligns education providers with students’ career outcomes, and one startup is staking a claim to be the leader in the space; Kenzie Academy, a year-long program with a physical campus in Indianapolis — and a student body that’s 66 percent online — announced a partnership with Community Investment Management (CIM) earlier this week that provides $100 million in debt to cover the operating costs associated with students who defer payment through ISAs.

Kenzie co-founder and CEO Chok Ooi says that core to Kenzie’s mission is the goal that its graduates “can stay in the heartland and attract more jobs so that someone coming out of the Midwest no longer has to move to Silicon Valley or New York to have a successful career in tech.” This $100 million is one of the largest commitments yet to financing ISAs and Kenzie is using it to recruit a more diverse population of students who may not be able to afford tuition or qualify for student loans otherwise.

I interviewed Ooi to understand how Kenzie differentiates itself from competitors, how it has iterated its model to improve retention and job placement and how he expects the ISA market to evolve over the next couple years. Here’s the transcript of our conversation, edited for length and clarity:

Eric Peckham: The landscape of software developer training programs is crowded. Where did you see an opportunity to do something different, and how do you position Kenzie relative to others in the market?

Chok Ooi: My co-founder came from Galvanize, so we observed firsthand the proliferation of tech and coding boot camps. These are typically short-term, three-to-five month programs and they tend to do well serving people with college degrees. I would say that they are disrupting the masters’ program space. We saw a major gap in programs that serve a much larger demographic of people who are much earlier in their development. People who never went to college, or did a little bit of college and dropped out, or just never had a professional work experience. A three-month training is insufficient to get them to a point where they could land a technical job and be successful.

We saw an opportunity to bring high-quality tech education to the American heartland that is 12 months in length. For about two-thirds of our students, this is their first post-secondary credential training.

We are giving them not just the technical skills, but elements from a traditional four-year college as well, like critical thinking, problem-solving and communication skills.

Compared to those other bootcamps or training programs, is Kenzie targeting different job outcomes for its graduates?

We did a survey of our students that asked them to name the top five tech companies they desired to work for. None of the Silicon Valley companies made the list other than Salesforce. Indianapolis is the second largest Salesforce office outside of San Francisco. The rest of the companies our students named were companies like DMI and Zylo that people in Silicon Valley don’t hear about but are doing very well in the Midwest. Their friends work there. They’re a fabric of the community. If we really want to create job opportunities for the rest of America, we cannot adopt the Silicon Valley mindset.

Kenzie Academy co-Founder and CEO Chok Ooi.

Kenzie Academy co-founder and CEO Chok Ooi.

So how do you evaluate technical aptitude and critical thinking in the admissions process? What’s that process look like, and how has it evolved over the last couple of years? What have you learned in order to make that more effective?

Prior to founding Kenzie, I started a company nine years ago called AglityIO. The model for AgilityIO was similar to companies like Andela. We were trying to solve the talent crunch in the Bay Area by recruiting and training people with the raw talent in Vietnam. Today, that company works with Google, Uber, NerdWallet, Meetup.com and 150 other tech companies. So I’ve experience in developing processes to identify raw talent in this context.

As people are doing the online assessments, we collect data points of how long it takes for them to solve the problem, what their different decision points are and things like that. Then as they get enrolled in Kenzie, we continue to collect attendance data, grades, and then placement data and use that to look at success and failure cases. We constantly refine our assessment.

Are you seeing any particular pattern or cluster in the applications you’re receiving or the candidates you’re accepting in terms of prior field of employment or aspect of their background?