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Vikrum Aiyer, the now-former vice president of global public policy and strategic communications at Postmates, penned a memo to his former colleagues and other stakeholders in the gig economy outlining what he thinks needs to happen next in the industry.

In his letter, Aiyer says “it would be a mistake for us to think that mild tweaks to worker classification, or a single state ballot measure, create a durable path forward for meaningfully addressing what Americans truly worry about: the chance to work, take care of their families, and not fret about what comes next.”

He goes on to say how tech platforms, labor advocates and other stakeholders “are not willing to evolve and give an inch on their respective models,” which means “we’ll never see progress that both empowers on-demand work and improves the social safety net.” Aiyer wants “this uncivil war that pits workers against capital, tech against labor unions, conservative versus liberal” to end.

In the letter, Aiyer puts forth a handful of recommendations for on-demand tech companies. He proposes, for example, that companies give board seats with voting rights to workers, embrace portable benefits “that can close the gap between what’s available to W2 and independent workers” and consider sectoral bargaining for gig workers.

Sectoral bargaining for independent workers would be an innovative reform that could provide sector-wide floors on earnings and benefits, while retaining IC classification. Some in organized labor have suggested extending the right to bargain for all workers –regardless of classification. Before industry dismisses this outright, and since this has not been done before in the US, it warrants critical examination by Congress, the GAO, or university labor centers to explore how card check rules, antitrust laws, and federal preemptions would be accounted for. In concept, this could empower workers and prevent less scrupulous companies from gaining a competitive advantage with a race to the bottom.

While Aiyer, along with Postmates and Uber, was a proponent of California’s Proposition 22, which legally classified gig workers as independent contractors, he says he does not want a carbon copy of it to be implemented throughout the country.

“While Prop 22 was a step forward when it comes to the argument that tech is making of balancing worker flexibility with more benefits on top of the 1099 status, there are two issues that need to prescribe the rest of the path forward,” he told TechCrunch.

The first is that this type of work has become rather popular, especially as the COVID-19 pandemic has led to millions of lost jobs throughout the country. Secondly, Aiyer says it’s important to get input from workers as companies push similar legislation either in other parts of the country, or at the federal level.

Aiyer pointed to a key difference in Postmates couriers in Los Angeles versus New York. In Los Angeles, Aiyer said many Postmates couriers are in cars while in New York, many are on bikes. Prop 22 put forth a new floor for insurance standard, but “that might not be the same type of coverage someone on a bike wants.”

“Prop 22 established a floor for California, but it certainly is not the ceiling of broader safety net reforms and what a nationwide policy should look like,” he said.

But for some gig workers, they have long said they don’t want to be independent contractors — even if that does come with some extra benefits. Instead, some have said they want to be employees and be entitled to the full range of benefits that W-2 status provides.

Ultimately, Aiyer thinks it’s a false dichotomy to have a binary in our society where there are workers with benefits and independent workers without.

“What about having both a W-2 full-time employee model and you can raise the standard of independent work to a new height of benefits and you can have both,” Aiyer said. “But to do that in a way that is inclusive to workers and labor advocates, you need to have a reset of those conversations, which haven’t really been taking place since AB 5.”

Aiyer, whose last day at Uber-owned Postmates was in early January, told me he hopes for his letter to reinvigorate conversations between the different stakeholders in the space. As for him, Aiyer told me his next professional move will be doing public interest work.

Source: https://techcrunch.com/2021/02/16/ex-postmates-vp-of-global-public-policy-on-the-future-of-gig-work/

The Israeli startup Redefine Meat, which has developed a manufacturing process to make plant-based proteins that more closely resemble choice cuts of beef than the current crop of hamburger-adjacent offerings, has gotten a big vote of confidence from the investment arm of one of Asia’s premier food brands. 

The company has raised $29 million in financing from Happiness Capital, the investment arm backed by the family fortunes of Hong Kong’s Lee Kum Kee condiment dynasty, and Hanaco Ventures, an investment firm backing startups in New York and Israel.

Investors have stampeded into the plant-based food industry, spurred by the rising fortunes of companies like Beyond Meat, which has inked partnerships with everyone from Pepsico to McDonald’s, and Impossible Foods, which counts Burger King among the brands boosting its plant-based faux meat.

While these companies have perfected plant patties that can delight the taste buds, the prospect of carving up a big honkin cut of pea protein in the form of a ribeye, sirloin or rump steak, has been a technical hurdle these companies have yet to overcome in a commercial offering.

Redefine Meat thinks its manufacturing processes have cracked the code on the formulation of plant-based steak.

They’re not the only ones. In Barcelona, a startup called Novameat raised roughly $300,000 earlier this year for its own take on plant-based steak. That company raised its money from the NEOTEC Program of the Spanish Center for Industrial Technological Development.

Both companies are using 3-D printing technologies to make meat substitutes that mimic the taste and texture of steaks, rather than trying to approximate the patties, meatballs, and ground meat that companies like Beyond Meat and Impossible have taken to market.

Backing Redefine’s path to market are a host of other investors including Losa Group, Sake Bosch, and K3 Ventures.

The company said it would use the new funding to expand its portfolio and support the commercial launch of its products. Redefine aims to have a large-scale production facility for its 3-D printers online before the end of the year, the company said in a statement.

In January, Redefine Meat announced a strategic agreement with the Israeli distributor Best Meister and the company has been expanding its staff with a current headcount of roughly 40 employees.

“We want to change the belief that delicious meat can only come from animals, and we have all the building blocks in place to make this a reality: high-quality meat products, strategic partnerships with stakeholders across the world, a large-scale pilot line under construction, and the first-ever industrial 3D Alt-Meat printers set to be deployed within meat distributors later this year,” said Eschar Ben-Shitrit, the company’s chief executive, in a statement. 

Source: https://techcrunch.com/2021/02/16/redefine-meat-is-moving-plant-based-proteins-from-patties-to-steaks/

Indian conglomerate Tata Group has reached an agreement to acquire a majority stake in grocery delivery startup BigBasket, a source familiar with the matter told TechCrunch.

The salt-to-software giant is buying over 60% stake in BigBasket, valuing the Indian startup between $1.8 billion to $2 billion, the source said, requesting anonymity as the deal is still private. BigBasket has raised over $750 million prior to the deal with Tata.

Indian news network ET Now reported on Tuesday that the two firms were in advanced talks, signals of which began to emerge in local media two quarters ago. Two BigBasket co-founders and Tata Group did not respond to a request for comment.

Chinese backer Alibaba and a handful of other investors are getting a near complete exit from BigBasket as part of the deal with Tata Group, the source said.

The move comes as Mumbai-headquartered Tata Group, which reported a revenue of $113 billion in 2019 and operates several popular brands such as Jaguar Land Rover and tea maker Tetley, looks to expand to more consumer businesses and works to develop a so-called superapp in the world’s second largest internet market.

Bangalore-headquartered BigBasket, which competes with SoftBank-backed Grofers and Reliance’s JioMart, operates in over two dozen cities in India and turned profitable months into the coronavirus pandemic as sales skyrocketed on the platform.

In a recent note to clients, Bank of America analysts estimated that the online grocery delivery market could be worth $12 billion in India by 2023.

“Competition is high in the sector with large verticals like BigBasket/Grofers and horizontal like Amazon/Flipkart trying to convert the unorganized market to organized one. Till recently the No 1 player in the space was BigBasket, with it hitting $1 billion annualized GMV & selling over 300,000 orders every day. Reliance Industries also threw its hat with the company launching its JioMart app in May-20 across 200 cites,” they wrote.

This is a developing story. More to follow…

Source: https://techcrunch.com/2021/02/16/tata-group-reaches-agreement-to-buy-majority-stake-in-bigbasket/

TikTok is facing a fresh round of regulatory complaints in Europe where consumer protection groups have filed a series of coordinated complaints alleging multiple breaches of EU law.

The European Consumer Organisation (BEUC) has lodged a complaint against the video sharing site with the European Commission and the bloc’s network of consumer protection authorities, while consumer organisations in 15 countries have alerted their national authorities and urged them to investigate the social media giant’s conduct, BEUC said today.

The complaints include claims of unfair terms, including in relation to copyright and TikTok’s virtual currency; concerns around the type of content children are being exposed to on the platform; and accusations of misleading data processing and privacy practices.

Details of the alleged breaches are set out in two reports associated with the complaints: One covering issues with TikTok’s approach to consumer protection, and another focused on data protection and privacy.

Child safety

On child safety, the report accuses TikTok of failing to protect children and teenagers from hidden advertising and “potentially harmful” content on its platform.

“TikTok’s marketing offers to companies who want to advertise on the app contributes to the proliferation of hidden marketing. Users are for instance triggered to participate in branded hashtag challenges where they are encouraged to create content of specific products. As popular influencers are often the starting point of such challenges the commercial intent is usually masked for users. TikTok is also potentially failing to conduct due diligence when it comes to protecting children from inappropriate content such as videos showing suggestive content which are just a few scrolls away,” the BEUC writes in a press release.

TikTok has already faced a regulatory intervention in Italy this year in response to child safety concerns — in that instance after the death of a ten year old girl in the country. Local media had reported that the child died of asphyxiation after participating in a ‘black out’ challenge on TikTok — triggering the emergency intervention by the DPA.

Soon afterwards TikTok agreed to reissue an age gate to verify the age of every user in Italy, although the check merely asks the user to input a date to confirm their age so seems trivially easy to circumvent.

In the BEUC’s report, the consumer rights group draws attention to TikTok’s flimsy age gate, writing that: “In practice, it is very easy for underage users to register on the platform as the age verification process is very loose and only self-declaratory.”

And while it notes TikTok’s privacy policy claims the service is “not directed at children under the age of 13” the report cites a number of studies that found heavy use of TikTok by children under 13 — with BEUC suggesting that children in fact make up “a very big part” of TikTok’s user base.

From the report:

In France, 45% of children below 13 have indicated using the app. In the United Kingdom, a 2020 study from the Office for Telecommunications (OFCOM) revealed that 50% of children between eight and 15 upload videos on TikTok at least weekly. In Czech Republic, a 2019 study found out that TikTok is very popular among children aged 11-12. In Norway, a news article reported that 32% of children aged 10-11 used TikTok in 2019. In the United States, The New York Times revealed that more than one-third of daily TikTok users are 14 or younger, and many videos seem to come from children who are below 13. The fact that many underage users are active on the platform does not come as a surprise as recent studies have shown that, on average, a majority of children owns mobile phones earlier and earlier (for example, by the age of seven in the UK).

A recent EU-backed study also found that age checks on popular social media platforms are “basically ineffective” as they can be circumvented by children of all ages simply by lying about their age.

Terms of use

Another issue raised by the complaints centers on a claim of unfair terms of use — including in relation to copyright, with BEUC noting that TikTok’s T&Cs give it an “irrevocable right to use, distribute and reproduce the videos published by users, without remuneration”.

A virtual currency feature it offers is also highlighted as problematic in consumer rights terms.

TikTok lets users purchase digital coins which they can use to buy virtual gifts for other users (which can in turn be converted by the user back to fiat). But BEUC says its ‘Virtual Item Policy’ contains “unfair terms and misleading practices” — pointing to how it claims an “absolute right” to modify the exchange rate between the coins and the gifts, thereby “potentially skewing the financial transaction in its own favour”.

While TikTok displays the price to buy packs of its virtual coins there is no clarity over the process it applies for the conversion of these gifts into in-app diamonds (which the gift-receiving user can choose to redeem for actual money, remitted to them via PayPal or another third party payment processing tool).

“The amount of the final monetary compensation that is ultimately earned by the content provider remains obscure,” BEUC writes in the report, adding: “According to TikTok, the compensation is calculated ‘based on various factors including the number of diamonds that the user has accrued’… TikTok does not indicate how much the app retains when content providers decide to convert their diamonds into cash.”

“Playful at a first glance, TikTok’s Virtual Item Policy is highly problematic from the point of view of consumer rights,” it adds.

Privacy

On data protection and privacy, the social media platform is also accused of a whole litany of “misleading” practices — including (again) in relation to children. Here the complaint accuses TikTok of failing to clearly inform users about what personal data is collected, for what purpose, and for what legal reason — as is required under Europe’s General Data Protection Regulation (GDPR).

Other issues flagged in the report include the lack of any opt-out from personal data being processed for advertising (aka ‘forced consent’ — something tech giants like Facebook and Google have also been accused); the lack of explicit consent for processing sensitive personal data (which has special protections under GDPR); and an absence of security and data protection by design, among other issues.

We’ve reached out to the Irish Data Protection Commission (DPC), which is TikTok’s lead supervisor for data protection issues in the EU, about the complaint and will update this report with any response.

France’s data watchdog, the CNIL, already opened an investigation into TikTok last year — prior to the company shifting its regional legal base to Ireland (meaning data protection complaints must now be funnelled through the Irish DPC as a result of via the GDPR’s one-stop-shop mechanism — adding to the regulatory backlog).

Jef Ausloos, a postdoc researcher who worked on the legal analysis of TikTok’s privacy policy for the data protection complaints, told TechCrunch researchers had been ready to file data protection complaints a year ago — at a time when the platform had no age check at all — but it suddenly made major changes to how it operates.

Ausloos suggests such sudden massive shifts are a deliberate tactic to evade regulatory scrutiny of data-exploiting practices — as “constant flux” can have the effect of derailing and/or resetting research work being undertaken to build a case for enforcement — also pointing out that resource-strapped regulators may be reluctant to bring cases against companies ‘after the fact’ (i.e. if they’ve since changed a practice).

The upshot of breaches that iterate is that repeat violations of the law may never be enforced.

It’s also true that a frequent refrain of platforms at the point of being called out (or called up) on specific business practices is to claim they’ve since changed how they operate — seeking to use that a defence to limit the impact of regulatory enforcement or indeed a legal ruling. (Aka: ‘Move fast and break regulatory accountability’.)

Nonetheless, Ausloos says the complainants’ hope now is that the two years of documentation undertaken on the TikTok case will help DPAs build cases.

Commenting on the complaints in a statement, Monique Goyens, DG of BEUC, said: “In just a few years, TikTok has become one of the most popular social media apps with millions of users across Europe. But TikTok is letting its users down by breaching their rights on a massive scale. We have discovered a whole series of consumer rights infringements and therefore filed a complaint against TikTok.

“Children love TikTok but the company fails to keep them protected. We do not want our youngest ones to be exposed to pervasive hidden advertising and unknowingly turned into billboards when they are just trying to have fun.

“Together with our members — consumer groups from across Europe — we urge authorities to take swift action. They must act now to make sure TikTok is a place where consumers, especially children, can enjoy themselves without being deprived of their rights.”

Reached for comment on the complaints, a TikTok spokesperson told us:

Keeping our community safe, especially our younger users, and complying with the laws where we operate are responsibilities we take incredibly seriously. Every day we work hard to protect our community which is why we have taken a range of major steps, including making all accounts belonging to users under 16 private by default. We’ve also developed an in-app summary of our Privacy Policy with vocabulary and a tone of voice that makes it easier for teens to understand our approach to privacy. We’re always open to hearing how we can improve, and we have contacted BEUC as we would welcome a meeting to listen to their concerns.

Source: https://techcrunch.com/2021/02/16/tiktok-hit-with-consumer-child-safety-and-privacy-complaints-in-europe/

Most small businesses today don’t have a dedicated staff to handle their IT needs. Take restaurants, for an example. They have likely outsourced this job to contract IT professionals to reduce expenses.

Every time they need to buy a point-of-sale machine, a printer, new computers, or assign business emails to employees, they reach out to a trusted IT advisor, who then works with vendor partners to secure products and services that the business needs.

A former investor at Accel spotted an opportunity in this space and is tackling it with her new startup called Zomentum. The U.S.-headquartered startup’s platform allows IT partners to bring their entire sales process together, a phenomenon she said is helping them increase their revenue and close more sales in less time.

On Tuesday, three-year-old Zomentum, which aims to build a strong IT partner network that can serve as an effective sales channel to promote the hyperlocal IT market, said it has raised $13 million in its Series A round from Greenoaks Capital and existing investors Elevation Capital and Accel. The new round, which brings Zomentum’s to-date raise to $17.1 million, also saw participation from Eight Roads Ventures.

“SMBs are often so focused on helping customers that they end up strapped for time to select the right technology that suits their business needs. Increasingly, more and more IT channel partners are assuming the role of trusted advisors to these SMBs for their technology needs,” said Shruti Ghatge, co-founder and chief executive of Zomentum.

Citing internal research, Zomentum said average IT partners on its platform are able to create documents 70% faster, close twice as many deals with a 600% increase in deal value, and are seeing 2X increase in conversion.

“We see an opportunity to leverage the power of AI and data science to enable business insights for these channel partners. We want our partners and their clients to leverage AI-enabled Business Intelligence to help gain actionable insights and take smart decisions, something that until now, was available only to enterprises,” said Rahil Shah, co-founder and chief technology officer of Zomentum, in a statement.

More than 80% of Zomentum customers today are in the U.S., and Ghatge said the startup will deploy the fresh capital to expand its presence in the market and broaden its product offerings.

More to follow…

Source: https://techcrunch.com/2021/02/16/zomentum-raises-13-million-to-scale-its-it-sales-acceleration-platform/