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Amazon Spark, the retailer’s two-year-old Instagram competitor, has shut down – TechCrunch

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Amazon’s two-year-old Instagram competitor, Amazon Spark, is no more.

Hoping to capitalize on the social shopping trend and tap into the power of online influencers, Amazon in 2017 launched its own take on Instagram with a shoppable feed of stories and photos aimed at Prime members. The experiment known as Amazon Spark has now come to an end. However, the learnings from Spark and Amazon’s discovery tool Interesting Finds are being blended into a new social-inspired product, #FoundItOnAmazon.

Amazon Spark had been a fairly bland service, if truth be told. Unlike on Instagram, where people follow their friend, interests, brands like they like, and people they find engaging or inspiring, Spark was focused on the shopping and the sale. While it tried to mock the Instagram aesthetic at times with fashion inspiration images or highly posed travel photos, it lacked Instagram’s broader appeal. Your friends weren’t there and there weren’t any Instagram Stories, for example. Everything felt too transactional.

Amazon declined to comment on the apparent shutdown of Spark, but the service is gone from the website and app.

The URL amazon.com/spark, meanwhile, redirects to the new #FoundItOnAmazon site — a site which also greatly resembles another Amazon product discovery tool, Interesting Finds.

Interesting Finds has been around since 2016, offering consumers a way to browse an almost Pinterest-like board of products across a number of categories. It features curated “shops” focused on niche themes, like a “Daily Carry” shop for toteable items, a “Mid Century” shop filled with furniture and décor, a shop for “Star Wars” fans, one for someone who loves the color pink, and so on. Interesting Finds later added a layer of personalization with the introduction of a My Mix shop filled with recommendations tailored to your interactions and likes.

The Interesting Finds site had a modern, clean look-and-feel that made it a more pleasurable way to browse Amazon’s products. Products photos appeared on white backgrounds while the clutter of a traditional product detail page was removed.

We understand from people familiar with the products that Interesting Finds is not shutting down as Spark has. But the new #FoundItOnAmazon site will take inspiration from what worked with Interesting Finds and Spark to turn it into a new shopping discovery tool.

Interesting Finds covers a wide range of categories, but #FoundItOnAmazon will focus more directly on fashion and home décor. Similar to Interesting Finds, you can heart to favorites items and revisit them later.

The #FoundItOnAmazon site is very new and isn’t currently appearing for all Amazon customers at this time. If you have it, the amazon.com/spark URL will take you there.

Though Amazon won’t talk about why its Instagram experiment is ending, it’s not too hard to make some guesses. Beyond its lack of originality and transactional nature, Instagram itself has grown into a far more formidable competitor since Spark first launched.

Last fall, Instagram fully embraced its shoppable nature with the introduction of shopping features across its app that let people more easily discover products from Instagram photos. It also added a new shopping channel and in March, Instagram launched its own in-app checkout option to turn product inspiration into actual conversions. It was certainly a big move into Amazon territory. And while that led to headlines about Instagram as the future of shopping, it’s not going to upset Amazon’s overall dominance any time soon.

In addition to the shifting competitive landscape, Spark’s primary stakeholder, Amazon VP of Consumer Engagement Chee Chew departed at the beginning of 2019 for Twilio. While at Amazon, Chew was heavily invested in Spark’s success and product managers would even tie their own efforts to Spark in order to win his favor, sources said.

For example, Amazon’s notifications section had been changed to include updates from Spark. And Spark used to sit a swipe away from the main navigation menu on mobile.

Following Spark’s closure, Amazon’s navigation has once again been simplified. It’s now a clutter-free hamburger menu. Meanwhile, Amazon’s notifications section no longer includes Spark updates — only alerts about orders, shipments, and personalized recommendations.

In addition, it’s likely that Spark wasn’t well adopted. Just 10,000 Amazon customers used it during its first 24 hours, we heard. With Chew’s departure, Spark lost its driving force. No one needed to curry favor by paying it attention, which may have also helped contribute to its shuttering.

6/14/19, 10:20 PM ET: Updated with further context after publication.

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Lime touts a 2020 turnaround and 2021 profitability – TechCrunch

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Micromobility company Lime says it has moved beyond the financial hardship caused by the COVID-19 pandemic, reaching a milestone that seemed unthinkable earlier this year.

In short, the company is now largely profitable.

Lime said it was both operating cash flow positive and free cash flow positive in the third quarter — a first — and is on pace to be full-year profitable, excluding certain costs (EBIT), in 2021.

During the WSJ Future of Everything event Thursday, Lime CEO Wayne Ting painted a far rosier picture of the company’s future than one might have expected.

There was a time when Bird and Lime, competing domestic scooter rental companies, were raising capital at a torrid pace, fighting for market share, regulatory breathing room and sidewalk real estate. Then, the pandemic hit and the companies had to take shelter.

Lime underwent a round of layoffs in April, taking on capital from Uber the next month in a down-round that brought its valuation under the $1 billion mark. As it announced in a blog post that TechCrunch reviewed before publication, it paused most of its operations for a month during the early COVID-19 days.

“It was certainly a very, very tough decision for us earlier this year and I know we weren’t the only company during COVID,” Ting said during the event.I think it’s been in so many ways helpful to us to realize how hard these choices can be. We’re going to be growing headcount again. We’re going to do so in a careful way so that we’re not going have to make hard choices like the ones we made earlier this year.”

Now things are better, Lime says. Much better. Indeed, the company claims that it is the “first new mobility company to reach cash-flow positive for a full quarter.”

Cash flow positivity, in general, is an important threshold for a startup to reach as it implies that the company can largely self-fund from that point forward, limiting its dependency on external cash for survival.

Lime also claims that it “reached EBIT positive at the company level over the summer.” The specifics of the phrase “EBIT positive” are important. Was the company employing strict EBIT on its math and not discounting share-based compensation, or was it measuring using adjusted EBIT as many startups do, removing the cost of share-based compensation that shows up in GAAP results? According to the company the number did exclude share-based compensation, making the news slightly smaller.

Perhaps the most bullish data point from Lime is that it expects to be full-year profitable in 2021. TechCrunch asked for specifics because again how one measures profitability matters. It turns out, Lime is basing this projection on EBIT, as opposed to more traditional net income. For a startup this is not a surprising decision, but before we declare Lime fully “profitable,” we’ll want some more GAAP metrics.

Still, it appears that Lime is not going to die, and is, importantly, putting capital into developing new products. The company provided the first example of that new product pipeline on Thursday with the launch of the Gen4 scooter in Paris. It also teased a so-called “third and fourth mode” in the first quarter of 2021 as well as the addition of a swappable battery.

The scooter company wouldn’t give TechCrunch much information about what these third and fourth modes will be. The first two modes are bikes and scooters, which leaves skateboards, cars, flying cars and boats?

Lime did give TechCrunch a little bit of clarification, stating that “move beyond,” means the company will be operating an additional mode, accessed through the Lime app, in line with its goal to serve any trips under five miles. These modes will build on the Lime Platform play, but this will be operated by Lime rather than a partner.

Lime has long discussed reaching profitability. Perhaps because it and its competitor Bird were infamous for their losses during their early unicorn period.

By November of 2019, Lime was talking about reaching EBIT positivity in 2020. But the start of 2020 was not kind on the company, with 100 of its staff losing their jobs and 12 markets getting dropped. At the time TechCrunch wrote that “Lime is hoping to achieve profitability this year by laying off about 14% of its workforce and ceasing operations in 12 markets,” with the company itself writing at the time that “financial independence [was its] goal for 2020, and [that it was] confident that Lime will be the first next-generation mobility company to reach profitability.”

Depending on how you measure profitability, that could be true.

Things didn’t get easier for Lime later in the year. Its competitor Bird underwent layoffs, and Lime cut more staff in April. At the time, Lime said that it was focused on coming “back stronger than ever when this is over.”

The company is certainly in better shape than it was in April and May. So, how did Lime come back from the brink? In its own estimation, the company took time during its pause to “drill down on getting the business right, narrowing [its] focus and strengthening [its] fundamentals.” That might sound like corporate babble, but by taking a nearly full stop in its operating business, Lime could probably see a bit more clearly what was working and what was not. And with some cuts to what wasn’t, it could set up a future in which its operations were leaner, and more unit-economically positive.

And, now, here we are asking niggling questions about just what sort of profit Lime is really making. Instead of, you know, who might buy its leftover office furniture. It’s a nice turnaround.

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Verizon partners with Apple to launch 5G Fleet Swap – TechCrunch

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Apple and Verizon today announced a new partnership that will make it easier for their business partners to go all-in on 5G. Fleet Swap, as the program is called, allows businesses to trade in their entire fleet of smartphones — no matter whether they are currently a Verizon customer or not — and move to the iPhone 12 with no upfront cost and either zero cost (for the iPhone 12 mini) or a low monthly cost.

(Disclaimer: Verizon is TechCrunch’s corporate parent. The company has zero input into our editorial decisions.)

In addition, Verizon also today announced its first two major indoor 5G ultra wideband services for its enterprise customers. General Motors and Honeywell are the first customers here, with General Motors enabling the technology at its Detroit-Hamtramck Assembly Center, the company’s all-electric vehicle plant. To some degree, this goes to show how carriers are positioning 5G ultra wideband as more of an enterprise feature than the lower-bandwidth versions of 5G.

“I think about how 5G [ultra wide band] is really filling a need for capacity and for capability. It’s built for industrial commercial use cases. It’s built on millimeter wave spectrum and it’s really built for enterprise,” Verizon Business CEO Tami Erwin told me.

It’s important to note that these two projects are not private 5G networks. Verizon is also in that business and plans to launch those more broadly in the future.

“No matter where you are on your digital transformation journey, the ability to put the power of 5G Ultra Wideband in all of your employees’ hands right now with a powerful iPhone 12 model, the best smartphone for business, is not just an investment for growth, it’s what will set a business’s future trajectory as technology continues to advance,” Erwin said in today’s announcement.

As for 5G Fleet Swap, the idea here is obviously to get more businesses on Verizon’s 5G network and, for Apple, to quickly get more iPhone 12s into the enterprise. Apple clearly believes that 5G can provide some benefits to enterprises — and maybe more so than to consumers — thanks to its low latency for AR applications, for example.

“The iPhone 12 lineup is the best for business, with an all-new design, advanced 5G experience, industry-leading security and A14 Bionic, the fastest chip ever in a smartphone,” said Susan Prescott, Apple’s vice president of Markets, Apps and Services. “Paired with Verizon’s 5G Ultra Wideband going indoors and 5G Fleet Swap, an all-new device offer for enterprise, it’s now easier than ever for businesses to build transformational mobile apps that take advantage of the powerful iPhone 12 lineup and 5G.”

In addition, the company is highlighting the iPhone’s secure enclave as a major security benefit for enterprises. And while other handset manufacturers launch devices that are specifically meant to be rugged, Apple argues that its devices are already rugged enough by design and that there’s a big third-party ecosystem to ruggedize its devices.

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Apple will pay $113M to settle 34-state ‘batterygate’ lawsuit – TechCrunch

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Apple has agreed to pay $113 million to 34 states and the District of Columbia to settle allegations that it broke consumer protection laws when it systematically downplayed widespread iPhone battery problems in 2016. This is in addition to the half billion the company already paid to consumers over the issue earlier this year and numerous other fines around the world.

The issue, as we’ve reported over the years, was that a new version of iOS was causing older (but not that old) iPhones to shut down unexpectedly, and that an update “fixing” this issue surreptitiously throttled the performance of those devices.

Conspiracy-minded people, which we now know are quite numerous, suspected this was a deliberate degradation of performance in order to spur the purchase of a new phone. This was not the case, but Arizona Attorney General Mike Brnovich, who led the multi-state investigation, showed that Apple was quite aware of the scale of the issue and the shortcomings of its solution.

Brnovich and his fellow AGs alleged that Apple violated various consumer protection laws, such as Arizona’s Consumer Fraud Act, by “misrepresenting and concealing information” regarding the iPhone battery problems and the irreversible negative consequences of the update it issued to fix them.

Apple agreed to a $113M settlement that admits no wrongdoing, to be split among the states however they choose. This is not a fine, like the €25M one from French authorities; if Apple had been liable for statutory penalties those might have reached much, much higher than the amount agreed to today. Arizona’s CFA provides for up to $10,000 per willful violation, and even a fraction of that would have added up very quickly given the amount of people affected.

In addition to the cash settlement, Apple must “provide truthful information to consumers about iPhone battery health, performance, and power management” in various ways. The company already made changes to this effect years ago, but in settlements like this such requirements are included so they can’t just turn around and do it again, though some companies, like Facebook, do it anyway.

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