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The Virtual Skinny: Hello, Weekend!

Posted by The Virtual Skinny on in Internet & Tech, Newsletter

10.9.2015

Good to Know:  It’s a long weekend (note: in the U.S., Oct.12 is Columbus Day).  No worries … We’ll be back on Tuesday, October 13! 

THE SKINNY

Pointing Fingers …

Someone hacked Uber’s system, and the ride-hailing app thinks Lyft (its U.S. nemesis) did it.

You’d Better Be Able to Back It Up … 

Someone accessed Uber’s system and downloaded up to 50,000 drivers’ names and license numbers.  Uber admits this probably all went down because an employee inadvertently made a security key code publicly available by posting it to GitHub, a website programmers use to trade code. Thanks to a Comcast IP address, Uber thinks Lyft’s Chief Technology Officer Chris Lambert is their Public Enemy #1.  The company can’t be too sure since the person’s identity is unknown.

Ok? Now What?

Uber won’t stop until it gets to the bottom of this.  Since it can’t identify the person, the company filed a “John Doe” lawsuit and got Comcast involved.  Uber convinced a federal judge to order Comcast to turn over records on the mystery subscriber.  Attorneys for the subscriber are appealing the decision to avoid any potential “embarrassment and reputational harm” that could result from a reveal.  Based on GitHub’s records, Uber’s targets could be any of four groups, including the Comcast IP address.  Investigators think the Comcast subscriber has a history of trying to scrape Uber’s website for driver data and also believe that other databases show that the IP address links to Lambert.   Lyft’s spokesperson said “no way, Jose” because Uber has no real evidence.

WHAT ELSE IS GOING ON? 

Onwards and Upwards …

Despite its legal drama with Uber, Lyft is making some important business moves.  The company is partnering with Hertz Global Holdings to rent SUVs out to potential Lyft drivers.  Stats show that over 60 million people over 25 years old in the U.S. don’t own a car.  So, car rentals may be the answer to get more drivers into Lyft’s network. The Lyft-Hertz agreement includes discounted rates for Lyft drivers. Here’s the rental price breakdown: a standard SUV – $25/day, $150/week or $540/month;  a premium SUV -$65/day, $390/week and $1,400/ month.  And in other good news for Lyft drivers, the company is launching its Express Pay service next month, which means same day payments for drivers.

Had I kNOWN … 

Earlier this week, we learned that fantasy sports websites FanDuel, Inc. and DraftKings, Inc. went into full on damage control after getting some unwanted attention, particularly from the New York State Attorney General, after news broke of potential insider trading by one of DraftKings’ employees.  Both companies banned their employees from competing in their daily contests for money and also brought in seasoned legal teams to get their houses in order.  But, as they say, things will get worse before they get better. Fantasy football player Adam Johnson who frequents both websites just filed a class action lawsuit against FanDuel and DraftKings.  Johnson says he put 100 bucks into his DraftKings account but wouldn’t have done so had he known that a company employee may not have been playing fair.  The damages Johnson is seeking have yet to be determined.

THE STREETS ARE TALKIN’

Uber is in a fighting mood. São Paulo’s  Mayor Fernando Haddad banned the service in his city recently but later came up with a proposal that would allow Uber to operate legally. The proposal involves things like Uber admitting that it’s a “black taxi,” all Uber cars must painted black, and cars must be less than 5 years old.  Not to mention, fees would apply. Uber said no thanks since it’s not a taxi service.

Price goin’ up!  Netflix’s new users will be on the hook for a dollar more in fees.  The streaming service’s price just went up to $10. No need to worry existing customers, your monthly fee will remain the same — for now.

Payment company Stripe just brought on Will Gaybrick as its new Chief Financial Officer. Gaybrick was previously an investor and software engineer with a law degree. Stay in school, kids.

Pinterest engineer Makinde Adeagbo wants to do his part to solve tech’s diversity problem. He just founded a non-profit to help connect black engineers with the resources needed to jumpstart their careers.

Next time you’re at your local KFC, Starbucks, Chili’s or Best Busy just know that using Apple Pay is an option.

Facebook’s David Marcus says messaging is the wave of the future.  Given how well things are going in Asia with other messaging apps, we could see FB Messenger grow into a full-blown business complete with peer-to-peer payments and the ability to connect directly with businesses.

The Virtual Skinny: One More Day

Posted by The Virtual Skinny on in Internet & Tech, Newsletter

9.3.2015

Good to Know: Ever wanted a Van Gogh? No problem. German researchers have figured out an algorithm to “paintify” any image into one of the classics.  And, it only takes an hour. 

THE SKINNY.

Slap on the Wrist – Tsk, Tsk … 

Starting November 1, Google is taking matters into its own hands search results by demoting sites that use “interstitial” ads in mobile search.

Inter-what Now?

“Interstitial” ads are basically those annoying full screen pop ups you sometimes come across when searching a site on your smartphone. These ads either prompt you to continue viewing the site’s mobile version or to download an app.

It’s Only Because We Care … 

Google says it’s got users’ back on this since interstitial ads create bad user experiences.  But, Jeremy Stoppelman, CEO of local review site Yelp, isn’t buying it.  Stoppelman says that the Google machine is only in it for itself.  In other words, he thinks Google wants to cut down on app usage in order to maintain its head honcho position in search.  #FightingWords

What Else Is Going On?

They’ve Got Woes (Legal Ones) in Different Area Codes … 

Yesterday, we told you about Uber’s legal troubles state-side.  And now, it looks like things are brewing abroad. For one, Brazil’s President Dilma Rousseff has been pretty vocal about the ride-hailing app putting regular taxi folk out of work. Major cities and Cade, the country’s antitrust body, are at odds.  Mayors of cities like Brasília, São Paulo, and Rio de Janeiro have all expressed intention to ban the app and are considering whether to make it official.  Cade, on the other hand, sees the benefits of increased competition.  Meanwhile, back on the ranch in China, Uber is sparring with local competitor Didi.  Both companies are pulling out all the stops to focus on their core customers, but Didi is taking home court advantage and maintains about 80% of the market.  Uber isn’t backing down and has set up Uber China to help raise funding and develop relationships. Why stop there? Of course not! Uber is also tapping into the African market. In its latest move, it’s formed partnerships with Kia and Access Bank Plc to make it easier for drivers in Lagos, Nigeria to get cheaper car deals.  The Nigerian market has serious potential with existing drivers completing about 2 million trips this year so far — double from last year. But, there are some challenges.  Other than heavy traffic and poor mapping capabilities, smartphone adoption and usage are still slim – coming in at only 10% of the country’s 148.5 million mobile subscriptions.

If You Can’t Beat ‘Em, Join ‘Em … 

Online streaming services like Amazon and Netflix don’t display ads during your viewing sessions, and Hulu is taking some cues from its competitors’ playbook as it looks to step its game all the way up.  For $11.99, Hulu is willing to offer users ad-free content with about seven exceptions. When it comes to major hits like Scandal, How to Get Away with Murder, New Girl, etc., Hulu plans to still show ads along with those shows even if you get the ad-free subscription. Sometimes, you just can’t shake old habits! With increased competition, Netflix’s shares got low, low, low, low – dropping even more after an 8% decline earlier this week.

One Day You’re In, The Next Day … 

Natalie Massenet, founder of Net-a-Porter (Net) – a luxury e-commerce site, is saying auf Wiedersehen to her own company after 15 years.   Although Massenet intended to bring luxury and all the feels of exclusivity to the Internet, Net struggled with profits.  Richemont, the site’s parent company, saw a merger with Yoox, an Italian mail order retailer, as the viable fix. Turns out not everyone agreed. Carmen Busquets, an early investor in Net, once said, “…I question the logic of these two companies together, and of the new personnel structure.”  Massenet was set to become the joint company’s chairman but is stepping down in advance of the merger.  Massenet, OUT!

Oh, the Possibilities … 

Sony is probably, maybe getting into the smart car game alongside Google and Apple. Its CEO Kazuo Hirai isn’t completely ruling out a full-on plunge into developing Sony cars, but for now, it simply wants to expand its smartphone camera sensor technology to cars.   Speaking of cars, Tesla’s Elon Musk announced that Model 3, its $35K mass-market car will begin production in about 2 years, but car enthusiasts can start pre-ordering them in March 2016. In the meantime, if you have $135k laying around, you can pick up its Model X on September 29.

The Streets Are Talkin’ 

Twitter is still looking for a CEO, but in the meantime, it wants Jeff Seibert to take over its products team and think through how to improve its service moving forward.  No pressure!

itBit, a Bitcoin exchange, has filled its General Counsel and Chief Compliance Officer role.  Daniel Alter is the man for the job after his three-year stint as General Counsel for the NY Department of Financial Services.

Snapchat is looking to grow its business and has tasked former Facebooker Anthony Pompliano in doing just that.

In non-new hire related news, cybersecurity start up Tanium recently raised $120 million and is now valued at $3.5 billion.

Oh, and Verizon got a new logo too.

The Virtual Skinny: Hello September

Posted by The Virtual Skinny on in Internet & Tech, Newsletter

9.2.2015

Good to Know: Yahoo CEO Marissa Mayer is preggers with twins! She doesn’t plan to take much of a maternity leave. Mazel! 

THE SKINNY.

Legal Woes like Woah … 

Uber drivers’ lawsuit against the ride hailing app just got interesting.  A U.S. district judge just gave the drivers a pretty big status upgrade — a class action status upgrade that is.

Give Me the Deats …

On Tuesday, U.S. District Judge Edward Chen said that Uber’s drivers may ban together to sue the company on whether they should be considered full-fledged employees or independent contractors. Oh, and the tips. The drivers also want tips that were allegedly never sent their way.

So, What? 

In the short term, a class action suit means that Uber drivers are now in a better position to negotiate a settlement.  In the long term, it’s hard to say.  If the drivers are eventually determined to be employees, it could spell trouble for Uber and other sharing economy companies like Lyft and Handy that rely on contractor models. Basically, the companies would be on the hook for payrolls taxes, Social Security, workers’ comp, etc.  We’ll wait and see.

What Else Is Going On?

All Eyes on You … 

Google’s antitrust issues in Europe are well-documented, but now, other countries are jumping on the bandwagon. India, Brazil, Mexico, and Argentina to name a few. These countries are taking a close look at Google from its financials to its competitiveness when it comes to search and online advertising.  In happier news, Google just got a new logo. It’s first major logo change since 1999.  Learn more about it here.

Binge Watching Will Never Be The Same Again … 

Say goodbye to major blockbusters like Hunger Games and Transformers on your Netflix account.  The online streaming service won’t be renewing its agreement with Epix, which owns a catalogue of big blockbuster films. Netflix’s Chief Content Officer Ted Sarandos says it makes perfect business sense because those titles are also available via other platforms and service.  Rather, Netflix is opting for more original content with new works coming from stars like Rickey Gervais, Adam Sandler, and Idris Elba (and no, we don’t think he’s “too street” to take on new roles (looking at you Anthony Horowitz – apology not accepted)!

They’re Coming For You …

While Netflix is turning its attention to original content, Amazon is making some changes to its video service.  The e-commerce company turned online content provider is offering users the ability to now download videos and watch them offline via Amazon Prime. Talk about game changer!

International Takeover … 

Despite its recent issues, Twitter is moving full steam ahead with its international expansion.  The social platform has put together a team in its Jakarta office to help acquire new users from Indonesia’s market of 250 million people and up revenues while they’re at it. This new team will be tasked with business development and marketing to bring in new media partnerships, increase advertising sales, and focus on public policy issues.

Work, Werk, or Maybe a Bit of Both… 

Looks like luxury brands want brilliant tech minds just as much as tech wants fashion.  Ian Rogers, creator of Beats 1 – Apple’s online radio station – is heading over to LMVH as its Chief Digital Officer to help luxury brands like Louis Vuitton, Fendi, Moët & Chandon and Bulgari fully transition to e-commerce and social media.

The Streets Are Talkin’ 

Instagram now wants you to communicate via private and group messages. #KeepingItYoung

ASOS, British online retailer, is losing its top boss. Co-founder and CEO Nick Robertson is leaving the company after 15 years.  While reasons for the departure are not yet known, what is known is that the company took a hit after the announcement.  The company’s shares are down 3.7 percent.  Oy!

The Virtual Skinny: Winning Isn’t Everything … Or Is It?

Posted by The Virtual Skinny on in Internet & Tech, Newsletter

1.13.2015

Good to Know:  In case you haven’t heard, the Golden Globes happened over the weekend.  Of course, Tina Fey and Amy Poehler slayed (check out their zings and cringe-worthy jokes), but online services had a pretty big night.  Kevin Spacey of Netflix’s House of Cards took home the Globe for Best Actor in a TV Series while Jeffrey Tambor nabbed one under the Best TV Comedy category for his role in Amazon’s Transparent.  Amazon’s hit show also went onto win overall Best Comedy Series. Uh … HUGE much?  

THE SKINNY.

Mr. President’s In The Buildin’ … 

Yesterday, President Obama stopped by the Federal Trade Commission to talk privacy and cybersecurity for the nation.  It marked the first time in 80 years since a sitting President had visited the agency.

A Different Type of Tour …

Just don’t call it a comeback!  On Monday, January, Obama began making the rounds on his plan, which include proposals on student data protections, a new consumer privacy baseline, and a federal standards to take the place of the current 50 state by state laws on how companies should handle data breaches.  Then the following day, he took his tour to another agency — the Department of Homeland Security – to talk cybersecurity and information sharing.  Cybersecurity is an increasingly important issue in the wake of the Sony hack’s.

The Big Finale … 

This week’s tour makes for an interesting move, as it’s a sneak peak into the President’s upcoming State of the Union address scheduled for next Tuesday night, January 20.  We’ll keep you posted on how that goes.  Meanwhile, Congress is moving full steam ahead on date breach and cybersecurity legislation.

Did Your Annoying Friend Just Mess with Your Facebook, Again? 

Well, no not really.  But, news recently broke that sympathizers of the Islamic State of Iraq AKA ISIS “hacked” into the U.S. military’s Central Command (CENTCOM) Twitter and YouTube accounts.  With a few tweets posted and some documents leaked (already publicly available), CENTCOM confirmed that their account had been “compromised” and are looking into it.  CENTCOM’s social accounts have since been taken offline.  Consider it sort of handled. Where’s Olivia Pope when you need her? #TGIT #Withdrawals

Whatchu Talkin’ Bout Cameron? 

British Prime Minister David Cameron also gave a speech of his own earlier this week where he alluded to potentially banning services like WhatsApp and SnapChat if they do not provide increased access to the UK government.  More specifically, Cameron wants the UK government to put in a place a framework to intercept all content of Internet-based communications.   This conversation differs drastically from the dialogue in the U.S. where companies, civil society groups, and others are calling for a reform of the 1986 Electronic Communications Privacy Act to require law enforcement to have a search warrant before being able to access users’ information stored online.  As users, we’d rather our information receive increased protection rather than less. #ByeFelicia (Looking at you, PM.)

Using Your Powers for Good …

Unfortunately, when we log onto our Facebook accounts from time to time, a missing child post pops up on our newsfeed. Now, Facebook is making things official by recently annoucing its partnership with the National Center for Missing and Exploited Children Amber Alerts by region to people on the social network.

The Streets Are Talkin’ 

Grocery-Delivery start-up, Instacart has raised $220 million in its latest round of raising funds.  The company is now valued at $2 billion. #Swag Spotify is racking up on its subscribers.  This week, the online music service announced that it’s reached upwards of 15 million paying users out of 60 monthly active users.  #LovesIt Oh and by the way, Amazon just got Woody Allen to direct for and write one of its new series, which will be available via the company’s Prime Instant Video service.

In Other News … 

Jimmy Kimmel continues his “Mean Tweets” series and is back with a College Football edition.  By the way, The Ohio State Buckeyes bested Oregon (42-20).

The Virtual Skinny: GET OUT THE VOTE!

Posted by The Virtual Skinny on in Internet & Tech, Newsletter 0 Comment

11.4.2014

Your Voice Really Does Matter:  It’s Election Day, ya’ll! Midterm elections that is. Not to sound too preachy, but if you are of voting age and able to vote, now is the time to do so. Contrary to popular belief, midterms are just as important as the national Presidential election (if not more important).

Today, you get to vote for not only state governors but also Senators, and Members of Congress (you know, the people who actually write and pass laws and greatly impact things we should all care about – jobs, the economy, social issues, foreign policy, etc.).

Nate Silver has spoken and predicts that Republicans have a 76% chance of taking control of the Senate. But, there’s still time to prove him wrong. Bottom line: Every vote counts so please do exercise your rights today. Not sure where to go? No worries, we got you! Check it out below.

[voterinfotool]

THE SKINNY.

Why Not Just Do Both?

It’s no longer a strategy for avoiding making those hard decisions about what to have for lunch. The Federal Communications Commission is using it too for its approach to maintaining an open Internet.  According to a leak late last week via the Wall Street Journal, the FCC wants to please everyone and is thinking about a hybrid approach to net neutrality.

Wait, What’s Net Neutrality Again?

As described in one of our posts back in July, net neutrality is the idea that all Internet traffic should be treated equally, and preferential treatment should not be given to any one application, content, platform, etc. based on who pays for what.  In other words, you shouldn’t have to pay extra fees just to watch high-quality streams of your fave shows or movies on Netflix or Amazon Prime.  We’d like to stream the content of our choice sans that dreaded buffering circle without having to fork over any more $$$, please and thank you.  Still, not sure about net neutrality?  John Oliver is still your guy.

Standing Out from the Crowd…

Of the 3 million plus comments the FCC received from the public on its proposed Open Internet (aka net neutrality) rules, it seems like 2 submissions stood out and is seriously being considered by the FCC.  So, what are these submissions?  They come courtesy of Mozilla and DC-based non profit the Center for Democracy & Technology.  For months, DC policy folks have been throwing around terms like Title II, Section 706, and common carrier.  Basically, the gist of these proposals is to treat content flowing from Internet platforms to ISPs (“wholesale” transactions) differently from content flowing from ISPs to users (“retail” transactions).  While the retail part won’t be heavily regulated, the wholesale part will be subject to the FCC’s net neutrality rules.

Compromise Is Good, Right?

Not exactly.  No one seems to like where this is headed.  ISPs are still strongly opposed to what seems like pretty much anything short of leaving things just the way they are and avoiding reclassification of Internet services as a utility (just think telephones).  Those who are pro-net neutrality are concerned that this hybrid approach still leaves room for “paid prioritization,” the exact same concept net neutrality seeks to ban. In other words, there could still be room for you to get charged to watch that high quality streaming of House of Cards or OITNB. Oy!

What’s Next?

We’ll have to wait and see how things unfold between now and the end of the year.  Some speculate that it’s possible we’ll see proposed rules by December but others are thinking sometime in January. But in the meantime, there’s talk about how a new Congress will deal with this issue, how this will impact things like the Comcast-Time Warner Cable merger, and even the markets.  So much to think through …

What Else Is Going On This Week?

It’s Not You, But It’s Not Me Either …

Its just business.  This is what Taylor Swift is probably telling Spotify.  Last week, she was on top of the world with the release of her new album.  Then, she kicked out this week by announcing her world tour! But, you gotta take the good news with the bad. And, the bad news is that she also pulled her entire catalog of music from Spotify. Why? It may have to do with concerns about piracy as she did pen an WSJ Op-Ed on the issue back in July.  Needless to say, Spotify isn’t too pleased.

More Of The Same …

Amazon recently jumped in on the diversity dialogue and released numbers on the make up of its employees.  Turns out Amazon employees are mostly white males, particularly as you climb up the ranks into leadership.  The U.S. breakdown of workers is as follows: White  – 60%; Black – 18%; Asian – 13%, and Hispanic – 9%.

From Russia With No Love 

Last week, Apple CEO Tim Cook publicly came out as gay.  This should be “NBD,” but it’s the first time this has been done by a CEO of a Fortune 500 company.  Almost everyone reacted positively and had nothing but kind words for Cook.  Russians, on the other hand, had a different reaction. In efforts to combat “gay propaganda,” a Steve Jobs memorial located in St. Petersburg in the form of a six feet plus iPhone monument has since been dismantled.

The Streets Are Talkin’

Google may or may not be looking for a new mission statement.  Larry Page, Google co-founder, recently told the Financial Times that the Internet company is probably due to update its mission statement.

Rumor has it that Apple Watch will be available in Spring 2015.

This past September, Chinese e-commerce company Alibaba went public. Today, it’s set to release its first earnings report. Some speculate that the company’s impressive growth will continue, and its revenue will probably increase about 45% from last year, totaling about $2.61 billion.  Things are looking good, but it could also face stiff competition from Tencent, a rival Chinese Internet holding company that owns a popular mobile messaging platform.

The Virtual Skinny: HAS LEBRON DECIDED YET?

Posted by The Virtual Skinny on in Internet & Tech, Newsletter

7.11.2014

GOOD TO KNOW:  The Internet is the new television.  Emmy nominations came out yesterday, and Netflix’s programming picked up 31 nominations for its hit shows like “House of Cards” and “Orange is the New Black” – over twice the amount the online service received last year.  

THE SKINNY.

 

SO, BASICALLY …

Netflix and Verizon aren’t feeling each other right now.

THROWING SHADE WITH THE BEST OF ‘EM.

Despite a recent agreement allowing Netflix direct access to Verizon’s network, the blame game over which party is responsible for slow streaming speeds continues.  Yesterday, Verizon said in a blog post that Netflix’s streaming issues is the online service’s own fault. The telecom company says these problems exist because Netflix chooses insufficient third party providers to deliver a huge amount of its traffic to Verizon even though the providers can’t handle it.

DON’T COME FOR ME, UNLESS I SEND FOR YOU.

Netflix responded and thanked Verizon for making its point. A Netflix spokesperson said that the ISP’s failure to upgrade its interconnection causes congestion.  Ultimately, everyday people like us are paying the price for it when we can’t watch our favorite shows online without any interruptions.  Netflix continues to call for strong net neutrality rules that also addresses interconnection.

WHAT IS NET NEUTRALITY?

Net neutrality is the idea that all Internet traffic should be treated equally, and preferential treatment should not be given to any one application, content, platform, etc. based on who pays for what.

IT’S COMPLICATED.

We’ll let John Oliver take it from here.  His breakdown of the net neutrality debate is EPIC. Watch it.  Trust us, you won’t regret it.

WHAT ELSE IS GOING ON?

 

THE COST OF APPS IS TOO DAMN HIGH.

The Federal Trade Commission claims that Amazon allegedly permitted unauthorized in-app purchases by kids without parental consent.  This action comes after the Commission received complaints presumably from parents who had to foot the bill for these apps, which the agency says collectively cost millions of dollars.  Amazon is ready to put up a fight.

FREE CELLPHONES. 

The U.S. Senate Judiciary Committee just cleared a bill that would allow cellphone users to “unlock” their devices.  If this bill turns into law, users will be able to use their phones on the wireless network of their choice.

I AM WHO YOU SAY I AM. 

Aereo says that it should be treated like a cable company and now wants authorization to pay for a license to transmit broadcast channels.  In the wake of the Supreme Court decision that found Aereo’s technology illegal, the startup says that a decision on whether it gets a license needs to happen sooner rather than later. Otherwise, stick a fork in them … they’re done.

THE STREETS ARE TALKIN’

Lyft is set to debut in New York City today and doesn’t think it should be subject to the city’s for hire regulations. Why? Well, the ride-sharing app says regulations need not apply because its drivers use their own cars to give rides to other for a “suggested donation.” The New York Taxi Commission disagrees.

The Yo app has gone viral, but it’s value is less than $10 million.  For an app that literally lets its users only send the word ‘yo” to each other, we’d say that’s pretty good.

Cover, a new mobile payments app that allows restaurant goers to pay for their checks without actually waiting for the check and all the hoopla that goes with it, just raised $5.5 million.

NOTE TO SELF

 

It pays to have technical skills.  Happy weekend, ya’ll!