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Dropbox relaunches as an enterprise collaboration workspace
Dropbox is evolving from a file-storage system to an enterprise software portal, where you can coordinate work with your team. Today the company launches a new version of Dropbox that allows you to launch apps with shortcuts for G Suite and more, plus use built-in Slack message-sending and Zoom video calls. It lets you search across all your files on your device and inside your other enterprise tools, and communicate and comment on your team’s work. Dropbox is also becoming a task manager, with the ability to add notes and tag co-workers in to-do lists attached to files.
The new Dropbox launches today for all of its 13 million business users across 400,000 teams plus its consumer tiers. Users can opt-in here for early access and businesses can turn on early access in their admin panel. “The way we work is broken,” CEO Drew Houston said to cue up the company’s mission statement: “to design a more enlightened way of working.”
Dropbox seems to have realized that file storage by itself is a dying business. With storage prices dropping and any app being able to add their own storage system, it needed to move up the enterprise stack and become a portal that opens and organizes your other tools. Becoming the enterprise coordination layer is a smart strategy, and one that it seems Slack was happy to partner into rather than building itself.
As part of the update, Dropbox is launching a new desktop app for all users so it won’t have to live inside your Mac or Windows file system. When you click a file, you can see a preview and presence data about who has viewed it, who is currently and who has access.
The launch includes deep integrations with Slack, so you can comment on files from within Dropbox, and Zoom, so you can video chat without leaving the workspace. Web and enterprise app shortcuts relieve you from keeping all your other tools constantly open in other tabs. Dropbox’s revamped search tool lets you crawl across your computer’s file system and all your cloud storage across other productivity apps.
But what’s most important about today’s changes is that Dropbox is becoming a task-management app. Each file lets you type out descriptions, to-do lists and tag co-workers to assign them tasks. An Activity Feed per file shows comments and actions from co-workers so you don’t have to collaborate in a separate Google Doc or Slack channel.
When asked about how Dropbox decided who to partner with (Slack, Zoom) versus who to copy (Asana), VP of biz dev Billy Blau essentially dodged the question while citing the “shared ethos” of Dropbox’s partners.
Houston kicked off the San Francisco launch event by pointing out that it’s easier to find info from the public than our own company’s knowledge that’s scattered across our computers and the cloud. The “Finder” on our computers hasn’t evolved to embrace a post-download era. He described how people spend 60% of our office time on work about work, like organization and communication, instead of actually working — a marketing angle frequently used by task-management startup Asana that Dropbox is now competing with more directly. “We’re going to help you get a handle on all this ‘work about work,’ ” Dropbox writes. Yet Asana has been using that phrase as a core of its messaging since 2013.
Now Dropbox wants to be your file tree, your finder and your desktop for the cloud. The question is whether files are always the central unit of work that comments and tasks should be pegged to, or whether it should be the task and project at the center of attention with files attached.
It will take some savvy onboarding and persistence to retrain teams to see Dropbox as their workspace instead of their computer’s desktop or their browser. But if it can become the identity and collaboration layer that connects the fragmented enterprise software, it could outlive file storage and stay relevant as new office tools emerge.
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Mobile games now account for 33% of installs, 10% of time and 74% of consumer spend
Mobile gaming continues to hold its own, accounting for 10% of the time users spend in apps — a percentage that has remained steady over the years, even though our time in apps overall has grown by 50% over the past two years. In addition, games are continuing to grow their share of consumer spend, notes App Annie in a new research report out this week, timed with E3.
Thanks to growth in hyper-casual and cross-platform gaming in particular, mobile games are on track to reach 60% market share in consumer spend in 2019.
The new report looks at how much time users spend gaming versus using other apps, monetization and regional highlights within the gaming market, among other things.
Despite accounting for a sizable portion of users’ time, games don’t lead the other categories, App Annie says.
Instead, social and communications apps account for half (50%) of the time users spent globally in apps in 2018, followed by video players and editors at 15%, then games at 10%.
In the U.S., users generally have eight games installed per device; globally, we play an average of two to five games per month.
The number of total hours spent on games continues to grow roughly 10% year-over-year, as well, thanks to existing gamers increasing their time in games and from a broadening user base, including a large number of mobile app newcomers from emerging markets.
This has also contributed to a widening age range for gamers.
Today, the majority of time spent in gaming is by those aged 25 and older. In many cases, these players may not even classify themselves as “gamers,” App Annie noted.
While games may not lead the categories in terms of time spent, they do account for a large number of mobile downloads and the majority of consumer spending on mobile.
One-third of all worldwide downloads are games across iOS, Google Play and third-party app stores.
Last year, 1.6+ million games launched on Google Play and 1.1+ million arrived on iOS.
On Android, 74 cents of every dollar is spent on games, with 95% of those purchases coming as in-app purchases, not paid downloads. App Annie didn’t have figures for iOS.
Google Play is known for having more downloads than iOS, but continues to trail on consumer spend. In 2018, Google Play grabbed a 72% share of worldwide downloads, compared with 28% on iOS. Meanwhile, Google Play only saw 36% of consumer spend versus 64% on iOS.
One particular type of gaming jumped out in the new report: racing games.
Consumer spend in this subcategory of gaming grew 7.9 times as fast as the overall mobile gaming market. Adventure games did well, too, growing roughly five times the rate of games in general. Music games and board games were also popular.
Of course, gaming expands beyond mobile. But it’s surprising to see how large a share of the broader market can be attributed to mobile gaming.
According to App Annie, mobile gaming is larger than all other channels, including home game consoles, handheld consoles and computers (Mac and PC). It’s also 20% larger than all these other categories combined — a shift from only a few years ago, attributed to the growth in the mobile consumer base, which allows mobile gaming to reach more people.
Cross-platform gaming is a key gaming trend today, thanks to titles like PUBG and Fortnite in particular, which were among the most downloaded games across several markets last year.
Meanwhile, hyper-casual games are appealing to those who don’t think of themselves as gamers, which has helped to broaden the market further.
App Annie is predicting the next big surge will come from AR gaming, with Harry Potter: Wizards Unite expected to bring Pokémon Go-like frenzy back to AR, bringing the new title $100 million in its first 30 days. The game is currently in beta testing in select markets, with plans for a 2019 release.
In terms of regions, China’s impact on gaming tends to be outsized, but its growth last year was limited due to the game license regulations. This forced publishers to look outside the country for growth — particularly in markets like North America and Japan, App Annie said.
Meanwhile, India, Brazil, Russia and Indonesia lead the emerging markets with regard to game
downloads, but established markets of the U.S. and China remain strong players in terms of sheer numbers.
With the continued steady growth in consumer spend and the stable time spent in games, App Annie states the monetization potential for games is growing. In 2018, there were 1,900 games that made more than $5 million, up from 1,200 in 2016. In addition, consumer spend in many key markets is still growing too — like the 105% growth in two years in China, for example, and the 45% growth in the U.S.
The full report delves into other regions as well as game publishers’ user acquisition strategies. It’s available for download here.
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Facebook’s new Study app pays adults for data after teen scandal
Facebook shut down its Research and Onavo programs after TechCrunch exposed how the company paid teenagers for root access to their phones to gain market data on competitors. Now Facebook is relaunching its paid market research program, but this time with principles — namely transparency, fair compensation and safety. The goal? To find out which other competing apps and features Facebook should buy, copy or ignore.
Today Facebook releases its “Study from Facebook” app for Android only. Some adults 18+ in the U.S. and India will be recruited by ads on and off Facebook to willingly sign up to let Facebook collect extra data from them in exchange for a monthly payment. They’ll be warned that Facebook will gather which apps are on their phone, how much time they spend using those apps, the app activity names of features they use in other apps, plus their country, device and network type.
Facebook promises it won’t snoop on user IDs, passwords or any of participants’ content, including photos, videos or messages. It won’t sell participants’ info to third parties, use it to target ads or add it to their account or the behavior profiles the company keeps on each user. Yet while Facebook writes that “transparency” is a major part of “Approaching market research in a responsible way,” it refuses to tell us how much participants will be paid.
“Study from Facebook” could give the company critical insights for shaping its product roadmap. If it learns everyone is using screensharing social network Squad, maybe it will add its own screensharing feature. If it finds group video chat app Houseparty is on the decline, it might not worry about cloning that functionality. Or if it finds Snapchat’s Discover mobile TV shows are retaining users for a ton of time, it might amp up teen marketing of Facebook Watch. But it also might rile up regulators and politicians who already see it as beating back competition through acquisitions and feature cloning.
An attempt to be less creepy
TechCrunch’s investigation from January revealed that Facebook had been quietly operating a research program codenamed Atlas that paid users ages 13 to 35 up to $20 per month in gift cards in exchange for root access to their phone so it could gather all their data for competitive analysis. That included everything the Study app grabs, but also their web browsing activity, and even encrypted information, as the app required users to install a VPN that routed all their data through Facebook. It even had the means to collect private messages and content shared — potentially including data owned by their friends.
Facebook’s Research app also abused Apple’s enterprise certificate program designed for distributing internal use-only apps to employees without the App Store or Apple’s approval. Facebook originally claimed it obeyed Apple’s rules, but Apple quickly disabled Facebook’s Research app and also shut down its enterprise certificate, temporarily breaking Facebook’s internal test builds of its public apps, as well as the shuttle times and lunch menu apps employees rely on.
In the aftermath of our investigation, Facebook shut down its Research program. It then also announced in February that it would shut down its Onavo Protect app on Android, which branded itself as a privacy app providing a free VPN instead of paying users while it collected tons of data on them. After giving users until May 9th to find a replacement VPN, the Onavo Protect was killed off.
This was an embarrassing string of events that stemmed from unprincipled user research. Now Facebook is trying to correct its course and revive its paid data collection program but with more scruples.
How Study from Facebook works
Unlike Onavo or Facebook Research, users can’t freely sign up for Study. They have to be recruited through ads Facebook will show on its own app and others to both 18+ Facebook users and non-users in the U.S. and India. That should keep out grifters and make sure the studies stay representative of Facebook’s user base. Eventually, Facebook plans to extend the program to other countries.
If users click through the ad, they’ll be brought to Facebook’s research operations partner Applause’s website, which clearly identifies Facebook’s involvement, unlike Facebook Research, which hid that fact until users were fully registered. There they’ll be informed how the Study app is opt-in, what data they’ll give up in exchange for what compensation and that they can opt out at any time. They’ll need to confirm their age, have a PayPal account (which are only supposed to be available to users 18 and over) and Facebook will cross-check the age to make sure it matches the person’s Facebook profile, if they have one. They won’t have to sign and NDA like with the Facebook Research program.
Anyone can download the Study from Facebook app from Google Play, but only those who’ve been approved through Applause will be able to log in and unlock the app. It will again explain what Facebook will collect, and ask for data permissions. The app will send periodic notifications to users reminding them they’re selling their data to Facebook and offering them an opt-out. Study from Facebook will use standard Google-approved APIs and won’t use a VPN, SSL bumping, root access, enterprise certificates or permission profiles you install on your device like the Research program that ruffled feathers.
Different users will be paid the same amount to their PayPal account, but Facebook wouldn’t say how much it’s dealing out, or even whether it was in the ball park of cents, dollars or hundreds of dollars per month. That seems like a stern departure from its stated principle of transparency. This matters, because Facebook earns billions in profit per quarter. It has the cash to potentially offer so much to Study participants that it effectively coerces them to give up their data; $10 to $20 per month like it was paying Research participants seems reasonable in the U.S., but that’s enough money in India to make people act against their better judgement.
The launch shows Facebook’s boldness despite the threat of antitrust regulation focusing on how it has suppressed competition through its acquisitions and copying. Democrat presidential candidates could use Study from Facebook as a talking point, noting how the company’s huge profits earned from its social network domination afford it a way to buy private user data to entrench its lead.
At 15 years old, Facebook is at risk of losing touch with what the next generation wants out of their phones. Rather than trying to guess based on their activity on its own app, it’s putting its huge wallet to work so it can pay for an edge on the competition.
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Welcome’s new app will do your travel planning for you
Welcome is a new app that CEO Matthew Rosenberg said is designed for a more spontaneous approach to traveling.
“What we’re going after is these millennials [and] Gen Z travelers who feel comfortable going in the moment,” Rosenberg told me. “Eighty-five percent of people aren’t even looking at activities before they arrive.”
So instead of asking travelers to create their own itineraries by browsing through a list of recommendations and reviews, Welcome builds the itinerary for them. When you’re planning to visit a destination, or when you’ve arrived and you’re wondering what to do, you can open Welcome and browse through a list of potential locations and activities, indicating which ones interest you. You also can browse recommendations from local experts, or ask for tips from your friends.
Welcome then uses your responses to create a schedule for you, consisting both of places you’ve explicitly said you want to visit and of things that would probably be of interest. The itineraries are also based on location, with different travel options like taking an Uber or Lyft, mass transit or walking.
Most intriguingly, the itineraries adjust in real time — if one of the items on the list doesn’t interest you, you can swipe to skip it, and Welcome will automatically fill in the gap with new activities. Or if you find a great spot where you want want to spend the whole afternoon, the app will once again adjust. Rosenberg said it’s even pulling in weather data, so “if we were going to send you to a park in the afternoon, and at lunch it starts raining, we can replace it with a museum.”
He acknowledged that this approach might be less suited for travelers who like to plan everything in advance — but even then, he noted, “The truth is, for all the planning that happens, most people’s plans tend to fall apart in the moment. Something always changes, some alley you want to go down, some boat you want to take, some sort of adventure that if you didn’t take it, you’d regret. That’s what we’ve really tried to embrace.”
Rosenberg added that the app could eventually introduce new ways for users to more explicitly filter the results based on their preferences — say, if they’re particularly interested in theater or museums, or if they’re on a tight budget.
Welcome says it already offers recommendations in more than 250 cities worldwide.
It’s a free app, and Rosenberg said the focus is on growth, not monetization. While he plans to make money by driving purchases and transactions, he said Welcome will never be advertising-driven. “Everything we show you is authentic. No one’s paying us to send you to some mediocre restaurant.”
The startup was founded by Rosenberg (who previously founded video app Cameo) and Peter Gerard, and has raised $1.2 million in seed funding led by 3 Rodeo.
“What we use today in travel is rooted in this old-school style of thinking,” Rosenberg said. “What I mean by that is, most travel sites put a bunch of pins on a map, but it’s still up to you to look around and figure out what to do. I don’t think anyone’s really thought: How can we take advantage not only of the mobile device, but really the data that’s out there right now … No one’s really built tools for our generation.”
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Apple is making corporate ‘BYOD’ programs less invasive to user privacy
When people bring their own devices to work or school, they don’t want IT administrators to manage the entire device. But until now, Apple only offered two ways for IT to manage its iOS devices: either device enrollments, which offered device-wide management capabilities to admins or those same device management capabilities combined with an automated setup process. At Apple’s Worldwide Developer Conference last week, the company announced plans to introduce a third method: user enrollments.
This new MDM (mobile device management) enrollment option is meant to better balance the needs of IT to protect sensitive corporate data and manage the software and settings available to users, while at the same time allowing users’ private personal data to remain separate from IT oversight.
According to Apple, when both users’ and IT’s needs are in balance, users are more likely to accept a corporate “bring your own device” (BYOD) program — something that can ultimately save the business money that doesn’t have to be invested in hardware purchases.
The new user enrollments option for MDM has three components: a managed Apple ID that sits alongside the personal ID; cryptographic separation of personal and work data; and a limited set of device-wide management capabilities for IT.
The managed Apple ID will be the user’s work identity on the device, and is created by the admin in either Apple School Manager or Apple Business Manager — depending on whether this is for a school or a business. The user signs into the managed Apple ID during the enrollment process.
From that point forward until the enrollment ends, the company’s managed apps and accounts will use the managed Apple ID’s iCloud account.
Meanwhile, the user’s personal apps and accounts will use the personal Apple ID’s iCloud account, if one is signed into the device.
Third-party apps are then either used in managed or unmanaged modes.
That means users won’t be able to change modes or run the apps in both modes at the same time. However, some of the built-in apps like Notes will be account-based, meaning the app will use the appropriate Apple ID — either the managed one or personal — depending on which account they’re operating on at the time.
To separate work data from personal, iOS will create a managed APFS volume at the time of the enrollment. The volume uses separate cryptographic keys which are destroyed along with the volume itself when the enrollment period ends. (iOS had always removed the managed data when the enrollment ends, but this is a cryptographic backstop just in case anything were to go wrong during unenrollment, the company explained.)
The managed volume will host the local data stored by any managed third-party apps along with the managed data from the Notes app. It also will house a managed keychain that stores secure items like passwords and certificates; the authentication credentials for managed accounts; and mail attachments and full email bodies.
The system volume does host a central database for mail, including some metadata and five line previews, but this is removed as well when the enrollment ends.
Users’ personal apps and their data can’t be managed by the IT admin, so they’re never at risk of having their data read or erased.
And unlike device enrollments, user enrollments don’t provide a UDID or any other persistent identifier to the admin. Instead, it creates a new identifier called the “enrollment ID.” This identifier is used in communication with the MDM server for all communications and is destroyed when enrollment ends.
Apple also noted that one of the big reasons users fear corporate BYOD programs is because they think the IT admin will erase their entire device when the enrollment ends — including their personal apps and data.
To address this concern, the MDM queries can only return the managed results.
In practice, that means IT can’t even find out what personal apps are installed on the device — something that can feel like an invasion of privacy to end users. (This feature will be offered for device enrollments, too.) And because IT doesn’t know which personal apps are installed, it also can’t restrict certain apps’ use.
User enrollments will also not support the “erase device” command — and they don’t have to, because IT will know the sensitive data and emails are gone. There’s no need for a full device wipe.
Similarly, the Exchange Server can’t send its remote wipe command — just the account-only remote wipe to remove the managed data.
Another new feature related to user enrollments is how traffic for managed accounts is guided through the corporate VPN. Using the per-app VPN feature, traffic from the Mail, Contacts and Calendars built-in apps will only go through the VPN if the domains match that of the business. For example, mail.acme.com can pass through the VPN, but not mail.aol.com. In other words, the user’s personal mail remains private.
This addresses what has been an ongoing concern about how some MDM solutions operate — routing traffic through a corporate proxy meant the business could see the employees’ personal emails, social networking accounts and other private information.
User enrollments also only enforces a six-digit non-simple passcode, as the MDM server can’t help users by clearing the past code if the user forgets it.
Some today advise users to not accept BYOD MDM policies because of the impact to personal privacy. While a business has every right to manage and wipe its own apps and data, IT has overstepped with some of its remote management capabilities — including its ability to erase entire devices, access personal data, track a phone’s location, restrict personal use of apps and more.
Apple’s MDM policies haven’t included GPS tracking, however, nor does this new option.
Apple’s new policy is a step toward a better balance of concerns, but will require that users understand the nuances of these more technical details — which they may not.
That user education will come down to the businesses that insist on these MDM policies to begin with — they will need to establish their own documentation, explainers, and establish new privacy policies with their employees that detail what sort of data they can and cannot access, as well as what sort of control they have over corporate devices.
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What top VCs look for in women’s fertility startups
A number of promising women’s health tech companies have popped up in the last few years, from fertility apps to ovulation bracelets — even Apple has jumped into the subject with the addition of period tracking built into the latest edition of the watch. But there hasn’t been much in the way of innovation in women’s sexual health for decades.
In-vitro fertilization (IVF) is now a 40-year-old invention and even the top pharmaceutical companies have spent a pittance on research and development. Subjects like polycystic ovarian syndrome, endometriosis and menopause have taken a backseat to other, more fatal concerns. Fertility is itself oftentimes a mysterious black box as well, though a full 10% of the female population in the United States has difficulty getting or staying pregnant.
That’s all starting to change as startups are now bringing in millions in venture capital to gather and treat women’s health. While it’s early days (no unicorns just yet) interest in the subject has been jumping steadily higher each year.
To shine a better light on the importance of tech’s role in spurring more innovation for women’s fertility, we asked five VCs passionate about the space for their investment strategies, including Sarah Cone (Social Impact Capital), Vanessa Larco (NEA), Anu Duggal (Female Founders Fund), Jess Lee (Sequoia) and Nancy Brown (Oak HC/FT).
Sarah Cone, Social Impact Capital
Sarah Cone, Social Impact Capital
We’re interested in companies that create large data sets in women’s health and fertility, enabling personalized medicine, clinical trial virtualization, better patient outcomes, and the application of modern AI/ML techniques to generate hypotheses that discover new targets and molecules.
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Answers to your burning questions about how ‘Sign In with Apple’ works
One of the bigger security announcements from Apple’s Worldwide Developer Conference this week is Apple’s new requirement that app developers must implement the company’s new single sign-on solution, Sign In with Apple, wherever they already offer another third-party sign-on system.
Apple’s decision to require its button in those scenarios is considered risky — especially at a time when the company is in the crosshairs of the U.S. Department of Justice over antitrust concerns. Apple’s position on the matter is that it wants to give its customers a more private choice.
From a security perspective, Apple offers a better option for both users and developers alike compared with other social login systems which, in the past, have been afflicted by massive security and privacy breaches.
Apple’s system also ships with features that benefit iOS app developers — like built-in two-factor authentication support, anti-fraud detection and the ability to offer a one-touch, frictionless means of entry into their app, among other things.
For consumers, they get the same fast sign-up and login as with other services, but with the knowledge that the apps aren’t sharing their information with an entity they don’t trust.
Consumers can also choose whether or not to share their email with the app developer.
If customers decide not to share their real email, Apple will generate a random — but real and verified — email address for the app in question to use, then will route the emails the app wants to send to that address. The user can choose to disable this app email address at any time like — like if they begin to get spam, for example.
The ability to create disposable emails is not new — you can add pluses (+) or dots (.) in your Gmail address, for example, to set up filters to delete emails from addresses that become compromised. Other email providers offer similar features.
However, this is the first time a major technology company has allowed customers to not only create these private email addresses for sign-ins to apps, but to also disable those addresses at any time if they want to stop receiving emails at them.
Despite the advantages to the system, the news left many wondering how the new Sign In with Apple button would work, in practice, at a more detailed level. We’ve tried to answer some of the more burning and common questions. There are likely many more questions that won’t be answered until the system goes live for developers and Apple updates its App Review Guidelines, which are its hard-and-fast rules for apps that decide entry into the App Store.
1) What information does the app developer receive when a user chooses Sign In with Apple?
The developer only receives the user’s name associated with their Apple ID, the user’s verified email address — or the random email address that routes email to their inbox, while protecting their privacy — and a unique stable identifier that allows them to set up the user’s account in their system.
Unlike Facebook, which has a treasure trove of personal information to share with apps, there are no other permissions settings or dialog boxes with Apple’s sign in that will confront the user with having to choose what information the app can access. (Apple would have nothing more to share, anyway, as it doesn’t collect user data like birthday, hometown, Facebook Likes or a friend list, among other things.)
2) Do I have to sign up again with the app when I get a new iPhone or switch over to use the app on my iPad?
No. For the end user, the Sign In with Apple option is as fast as using the Facebook or Google alternative. It’s just a tap to get into the app, even when moving between Apple devices.
3) Does Sign In with Apple work on my Apple Watch? Apple TV? Mac?
Sign In with Apple works across all Apple devices — iOS/iPadOS devices (iPhone, iPad and iPod touch), Mac, Apple TV and Apple Watch.
4) But what about Android? What about web apps? I use my apps everywhere!
There’s a solution, but it’s not quite as seamless.
If a user signs up for an app on their Apple device — like, say, their iPad — then wants to use the app on a non-Apple device, like their Android phone, they’re sent over to a web view.
Here, they’ll see a Sign In with Apple login screen where they’ll enter their Apple ID and password to complete the sign in. This would also be the case for web apps that need to offer the Sign In with Apple login option.
This option is called Sign In with Apple JS as it’s JavaScript-based.
(Apple does not offer a native SDK for Android developers, and honestly, it’s not likely to do so any time soon.)
5) What happens if you tap Sign In with Apple, but you forgot you already signed up for that app with your email address?
Sign In with Apple integrates with iCloud Keychain so if you already have an account with the app, the app will alert you to this and ask if you want to log in with your existing email instead. The app will check for this by domain (e.g. Uber), not by trying to match the email address associated with your Apple ID — which could be different from the email used to sign up for the account.
6) If I let Apple make up a random email address for me, does Apple now have the ability to read my email?
No. For those who want a randomized email address, Apple offers a private email relay service. That means it’s only routing emails to your personal inbox. It’s not hosting them.
Developers must register with Apple which email domains they’ll use to contact their customers and can only register up to 10 domains and communication emails.
7) How does Sign In with Apple offer two-factor authentication?
On Apple devices, users authenticate with either Touch ID or Face ID for a second layer of protection beyond the username/password combination.
On non-Apple devices, Apple sends a six-digit code to a trusted device or phone number.
8) How does Sign In with Apple prove I’m not a bot?
App developers get access to Apple’s robust anti-fraud technology to identify which users are real and which may not be real. This is tech it has built up over the years for its own services, like iTunes.
The system uses on-device machine learning and other information to generate a signal for developers when a user is verified as being “real.” This is a simple bit that’s either set to yes or no, so to speak.
But a “no” doesn’t mean the user is a definitely a bot — they could just be a new user on a new device. However, the developer can take this signal into consideration when providing access to features in their apps or when running their own additional anti-fraud detection measures, for example.
9) When does an app have to offer Sign In with Apple?
Apple is requiring that its button is offered whenever another third-party sign-in option is offered, like Facebook’s login or Google. Note that Apple is not saying “social” login though. It’s saying “third-party,” which is more encompassing.
This requirement is what’s shocking people as it seems heavy-handed.
But Apple believes customers deserve a private choice, which is why it’s making its sign-in required when other third-party options are provided.
But developers don’t have to use Sign In with Apple. They can opt to just use their own direct login instead. (Or they can offer a direct login and Sign In with Apple, if they want.)
10) Do the apps only have to offer Sign In with Apple if they offer Google and/or Facebook login options, or does a Twitter, Instagram or Snapchat sign-in button count, too?
Apple hasn’t specified this is only for apps with Facebook or Google logins, or even “social” logins. Just any third-party sign-in system. Although Facebook and Google are obviously the biggest providers of third-party sign-in services to apps, other companies, including Twitter, Instagram and Snapchat, have been developing their own sign-in options, as well.
As third-party providers, they too would fall under this new developer requirement.
11) Does the app have to put the Sign In with Apple button on top of the other options or else get rejected from the App Store?
Apple is suggesting its button be prominent.
The company so far has only provided design guidelines to app developers. The App Store guidelines, which dictate the rules around App Store rejections, won’t be updated until this fall.
And it’s the design guidelines that say the Apple button should be on the top of a stack of other third-party sign-in buttons, as recently reported.
The design guidelines also say that the button must be the same size or larger than competitors’ buttons, and users shouldn’t have to scroll to see the Apple button.
But to be clear, these are Apple’s suggested design patterns, not requirements. The company doesn’t make its design suggestions law because it knows that developers do need a degree of flexibility when it comes to their own apps and how to provide their own users with the best experience.
12) If the app only has users signing up with their phone number or just their email, does it also have to offer the Apple button?
Not at this time, but developers can add the option if they want.
13) After you sign in using Apple, will the app still make you confirm your email address by clicking a link they send you?
Nope. Apple is verifying you, so you don’t have to do that anymore.
14) What if the app developer needs you to sign in with Google, because they’re providing some sort of app that works with Google’s services, like Google Drive or Docs, for example?
This user experience would not be great. If you signed in with Apple’s login, you’d then have to do a second authentication with Google once in the app.
It’s unclear at this time how Apple will handle these situations, as the company hasn’t offered any sort of exception list to its requirement, nor any way for app developers to request exceptions. The company didn’t give us an answer when we asked directly.
It may be one of those cases where this is handled privately with specific developers, without announcing anything publicly. Or it may not make any exceptions at all, ever. And if regulators took issue with Apple’s requirement, things could change as well. Time will tell.
15) What if I currently sign in with Facebook, but want to switch to Sign In with Apple?
Apple isn’t providing a direct way for customers to switch for themselves from Facebook or another sign-in option to Apple ID. It instead leaves migration up to developers. The company’s stance is that developers can and should always offer a way for users to stop using their social login, if they choose.
In the past, developers could offer users a way to sign in only with their email instead of the third-party login. This is helpful particularly in those cases where users are deleting their Facebook accounts, for example, or removing apps’ ability to access their Facebook information.
Once Apple ID launches, developers will be able to offer customers a way to switch from a third-party login to Sign In with Apple ID in a similar way.
Do you have more questions you wish Apple would answer? Email me at sarahp@techcrunch.com
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Weighing Peloton’s opportunity and risks ahead of IPO
Exercise tech company Peloton filed confidentially for IPO this week, and already the big question is whether their last private valuation at $4 billion might be too rich for the appetites of public market investors. Here’s a breakdown of the pros and cons leading up to the as-yet revealed market debut date.
Risk factors
The biggest thing to pay attention to when it comes time for Peloton to actually pull back the curtains and provide some more detailed info about its customers in its S-1. To date, all we really know is that Peloton has “more than 1 million users,” and that’s including both users of its hardware and subscribers to its software.
The mix is important – how many of these are actually generating recurring revenue (vs. one-time hardware sales) will be a key gauge. MRR is probably going to be more important to prospective investors when compared with single-purchases of Peloton’s hardware, even with its premium pricing of around $2,000 for the bike and about $4,000 for the treadmill. Peloton CEO John Foley even said last year that bike sales went up when the startup increased prices.
Hardware numbers are not entirely distinct from subscriber revenue, however: Per month pricing is actually higher with Peloton’s hardware than without, at $39 per month with either the treadmill or the bike, and $19.49 per month for just the digital subscription for iOS, Android and web on its own.
That makes sense when you consider that its classes are mostly tailored to this, and that it can create new content from its live classes which occur in person in New York, and then are recast on-demand to its users (which is a low-cost production and distribution model for content that always feels fresh to users).
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Depop, a social app targeting millennial and Gen Z shoppers, bags $62M, passes 13M users
The rising popularity of omni-channel commerce — selling to customers wherever they happen to be spending time online — has spawned an army of shopping tools and platforms that are giving legacy retail websites and marketplaces a run for their money. Now, one of the faster growing of these is announcing an impressive round of funding to stay on trend and continue building its business.
Depop, a London startup that has built an app for individuals to post and sell (and mainly resell) items to groups of followers by way of its own and third-party social feeds, has closed a Series C round of $62 million led by General Atlantic. Previous investors HV Holtzbrinck Ventures, Balderton Capital, Creandum, Octopus Ventures, TempoCap and Sebastian Siemiatkowski, founder and CEO of Swedish payments company Klarna, all also participated.
The funding will be used in a couple of areas. First, to continue building out the startup’s technology — building in more recommendation and image detection algorithms is one focus.
And second, to expand in the U.S., which CEO Maria Raga said is on its way to being Depop’s biggest market, with 5 million users currently and projections of that going to 15 million in the next three years.
That’s despite strong competition from other peer-to-peer selling platforms like Vinted and Poshmark, and social platforms that have been doubling down on commerce, like Instagram and Pinterest. On the other hand, the opportunity is big: A recent report from ThredUp, another second-hand clothes sales platform, estimated that the total resale market is expected to more than double in value to $51 billion from $24 billion in the next five years, accounting for 10% of the retail market.
Prior to this, Depop had raised just under $40 million. It’s not disclosing its valuation except to say it’s a definite up round. “I’m extremely happy,” Raga said when I asked her about it this week.
The rise of the bedroom entrepreneur
The funding comes on the heels of strong growth and strong focus for the startup.
If “social shopping,” “selling to groups of followers,” and the “use of social feeds” (or my headline…) didn’t already give it away, Depop is primarily aimed at millennial and Gen Z consumers. The company said that about 90% of its active users are under the age of 26, and in its home market of the U.K. it’s seen huge traction, with one-third of all 16 to 24-year-olds registered on Depop.
Its rise has dovetailed with some big changes that the fashion industry has undergone, said Raga. “Our mission is to redefine the fashion industry in the same way that Spotify did with music, or Airbnb did with travel accommodation,” she said.
“The fashion world hasn’t really taken notice” of how things have evolved at the consumer end, she continued, citing concerns with sustainability (and specifically the waste in the fashion industry), how trends are set today (no longer dictated by brands but by individuals) and how anything can be sold by anyone, from anywhere, not just from a store in the mall, or by way of a well-known brand name website. “You can now start a fashion business from your bedroom,” she added.
For this generation of bedroom entrepreneurs, social apps are not a choice, but simply the basis and source of all their online engagement. Depop notes that the average daily user opens the app “several times per day” both to browse things, check up on those that they follow, to message contacts and comment on items and, of course, to buy and sell. On average, Depop users collectively follow and message each other 85 million times each month.
This rapid uptake and strong usage of the service has driven it to 13 million users, revenue growth of 100% year-on-year for the past few years and gross merchandise value of more than $500 million since launch. (Depop takes a 10% cut, which would work out to total revenues of about $50 million for the period.)
When we first wrote about Depop back in 2015 (and even prior to that), the startup and app were primarily aiming to provide a way for users to quickly snap pictures of their own clothes and other used items to post them for sale, one of a wave of flea-market-inspired apps that were emerging at that time. (It also had an older age group of users, extending into the mid-thirties.)
Fast-forward a few years and Depop’s growth has been boosted by an altogether different trend: the emergence of people who go to great efforts to buy limited editions of collectable, or just currently very hot, items, and then resell them to other enthusiasts. The products might be lightly used, but more commonly never used, and might include limited-edition sneakers, expensive t-shirts released in “drops” by brands themselves or items from one-off capsule collections.
It may have started as a way of decluttering by shifting unused items of your own, but it’s become a more serious endeavor for some. Raga notes that Depop’s top sellers are known to clear $100,000 annually. “It’s a real business for them,” she said.
And Depop still sells other kinds of goods, too. These pressed-flower phone cases, for example, have seen a huge amount of traction on Twitter, as well as in the app itself in the last week:
Ordered a new phone case off this woman from depop who makes them with pressed flowers n she sent me this :’) pic.twitter.com/oBtRtQ1MJc
— megan (@__meganbenson) June 1, 2019
Alongside its own app and content shared from there to other social platforms, Depop extends the omnichannel approach with a selection of physical stores, too, to showcase selected items.
The startup has up to now taken a very light-touch approach to the many complexities that can come with running an e-commerce business — a luxury that’s come to it partly because its sellers and buyers are all individuals, mostly younger individuals and, leaning on the social aspect, the expectation that people will generally self-police and do right by each other, or risk getting publicly called out and lose business as a result.
I think that as it continues to grow, some of that informality might need to shift, or at least be complemented with more structure.
In the area of shipping, buyers generally do not seem to expect the same kind of shipping tracking or delivery professionals appearing at their doors. Sellers handle all the shipping themselves, which sometimes means that if the buyer and seller are in the same city, an in-person delivery of an item is not completely unheard of. Raga notes that in the U.S. the company has now at least introduced pre-paid envelopes to help with returns (not so in the U.K.).
Payments come by way of PayPal, with no other alternatives at the moment. Depop’s 10% cut on transactions is in addition to PayPal’s fees. But having the Klarna founder as a backer could pave the way for other payment methods coming soon.
One area where Depop is trying to get more focused is in how its activities line up with state laws and regulations.
For example, it currently already proactively looks for and takes down posts offering counterfeit or other illicit goods on the platform, but also relies on people or brands reporting these. (Part of the tech investment into image detection will be to help improve the more automated algorithms, to speed up the rate at which illicit items are removed.)
Then there is the issue of tax. If top sellers are clearing $100,000 annually, there are taxes that will need to be paid. Raga said that right now this is handed off to sellers to manage themselves. Depop does send alerts to sellers, but it’s still up to the sellers themselves to organise sales tax and other fees of that kind.
“We are very close to our top sellers,” Raga said. “We’re in contact on a daily basis and we inform of what they have to do. But if they don’t, it’s their responsibility.”
While there is a lot more development to come, the core of the product, the approach Depop is taking and its success so far have been the winning combination to bring on this investment.
“Technology continues to transform the retail landscape around the world and we are incredibly excited to be investing in Depop as it looks to capture the huge opportunity ahead of it,” said Melis Kahya, General Atlantic head of Consumer for EMEA, in a statement. “In a short space of time the team has developed a truly differentiated platform and globally relevant offering for the next generation of fashion entrepreneurs and consumers. The organic growth generated in recent years is a testament to the impact they are having and we look forward to working with the team to further accelerate the business.”
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Instagram one-ups TikTok with karaoke lyrics
Lip-syncing jumpstarted TikTok’s rise to the center of teen culture, arguably displacing Instagram . Now the Facebook-owned app is striking back with a new feature that lets you displays lyrics on your video Story synced to a soundtrack you’ve added with the Music sticker. Lyrics could help creators and their fans sing along, and the visual flare could make the amateur MTV content more watchable.
Instagram scored a big endorsement from teen scare-pop phenomenon Billie Eilish who’s featured in the demo video for Story lyrics, which are now available in all the countries where Instagram Music has launched including the US, Germany, and France.
To play with the feature, first select the Music lens type (amidst Boomerang and other options) before you shoot or the Music sticker after. Once you pick a song, you’ll see lyrics pop up which can help you cue the segment of the music you want to play. Then you can cycle through a bunch of animation styles like traditional karaoke teleprompter, a typewriter version that preserves mystery by only revealing lyrics as they’re sung, and big flashy billboard font.
“Music can be a big part of expression on Instagram – between adding music to Stories, connecting with artists, sending song recs back-and-forth, there are lots of ways to connect with music on IG” an Instagram spokesperson tells me. “Now, we’re building on our music features and introducing the ability to add lyrics when you add a song to your story.” As with pretty much everything Instagram launches, it was first dug out of Android code and revealed to the world by frequent TechCrunch tipster and reverse engineering master Jane Manchun Wong. She first spotted Lyrics in March and we wrote about the prototype in April.
But TikTok isn’t waiting up. Today it launched its own text feature for adding overlaid captions to videos. Typically, creators had to use Snapcat, Instagram Stories, or desktop editing software to add text. Creators are sure to find plenty of hilarious use cases for text on TikTok, and it could help replace the common trope of writing captions on paper and holding them up during clips.
All of these features are about keeping social video from going stale. The manicured, painstakingly posed Instagram aesthetic is over, as The Atlantic’s Taylor Lorenz deftly identified. Fans are sick of perfection, which breeds envy and feels plastic or inauthentic. Comedy, absurdity, and the rough edges of reality are becoming the new ‘look’ of social media. Tools to overlay lyrics and text give creators more freedom to express complex jokes or just act silly. The popularity of Billie Eilish’s own dirtbag chic fashion and willingness to reveal her own insecurities exemplifies this shift, so it’s smart Instagram is using her as the face of its next wave of visual communication.
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