Luxury, technology and a whole lot of flash often go hand in hand. In the age of space-faring billionaires, we all expect the latest wiz-bang gadget to look like something from the future, right?
Not in Audi’s view. The 2022 Audi e-tron GT and RS e-tron GT are a pair of all-electric grand touring halo cars that don’t look like something from 2060. They look just like sleek gasoline-powered GTs, but beneath the skin, there’s a whole lot more power, technological pop and panache than the design implies at first glance.
The 2022 Audi e-tron GT and RS e-tron GT get a low-slung roofline, wide track and long wheelbase like those grand tourers of the past, with the addition of a few design flourishes to bring it in line with Audi’s subtle, yet luxurious aesthetic. While the e-tron GT and the RS e-tron GT were both produced alongside the Audi R8 (its roofline is lower than the R8) and borrow a few things from that iconic design, these electric grand tourers are a pair of beasts all their own.
Based on the same 800-volt architecture as the Porsche Taycan, the e-tron GT makes 469 combined horsepower (up to 522 hp with overboost) from a pair of dual, permanent-magnet motors powering the front and rear wheels. The RS e-tron GT makes 590 (637 hp with overboost) horsepower from those same motors and Audi says it can do 0-60 in 3.1 seconds.
Both vehicles are capable, confident and quick and don’t tarry on mountain roads or long highway stretches. Acceleration is almost seamless, as it is in most electric vehicles.
Thanks to Audi’s electric quattro all-wheel drive with torque vectoring system, both vehicles are sure-footed and well sorted, even when the wheels start to squeal. This system allows a variable amount of power to be sent to wheels that slip when cornering hard, making a sudden lane change, or driving in slippery conditions.
The vehicles I drove were outfitted with summer tires, and I got to test a bit of this out on a closed slalom course with a sudden lane change at the end at the Agua Dulce Airpark about 50 miles northeast of downtown Los Angeles. I ran the RS e-tron GT through the cones three consecutive times to get a feel for the system and each time the car felt secure, planted and under control.
Both the e-tron GT and the RS e-tron GT also get optional rear-wheel steering. Under 30 mph, the rear wheels can turn up to 2.8 degrees in the opposite direction to the front wheels to help make the turning radius of the e-tron GT and the RS e-tron GT smaller. Above 30 mph the rear wheels turn in the same direction as the front. This system is similar (with fewer degrees of rotation) to that in the Porsche Taycan.
While I did not get to try out overboost in either vehicle on the smooth tarmac at the airpark, I did run a series of back-to-back 0 to 100 mph accelerations using launch control in the RS e-tron GT. Amongst the cohort of journalists there, I came in second, doing 0-60 in 3.24 seconds and 0-100 in 7.29 seconds. In 102-degree heat, on cold tires, those numbers are plenty impressive. By the end of the runway, I saw speeds approaching 120 mph, 32 mph short of the electronically limited 155 mph, (152 mph in the e-tron GT) before hitting the brakes. After three back-to-back runs, the fully charged RS e-tron GT had only lost 20 miles of range.
The EPA-estimated range for the RS e-tron GT is 232 miles while the e-tron GT is estimated to get 239 miles of range.
Those estimated EPA ranges are a result of the low-slung 93 kWh battery pack (the same in both vehicles) that Audi says can charge up to 80% in 23 minutes on 270-volt chargers (DC fast charging).
The e-tron GT starts at $99,900 and the RS e-tron GT pops to a higher $139,900 (both excluding the $1,045 destination charge). That price tag does come with one-time limited benefit.
Audi paired up with Electrify America to offer free, unlimited public charging for three years (without time restrictions). They also offer at-home charging stations set up through Qmerit. Both the e-tron GT and the RS e-tron GT come with standard dual charging ports and a 9.6 kW charging system with 240-volt capability so that owners can charge anywhere. Electrify America was launched by the Volkswagen Group, which owns Audi, following the Dieselgate scandal.
Finding any charger is available through the infotainment system, known as the MMI, and the 10.1-inch touchscreen in the center console. Head to navigation and then hit the icon marked with a plug and a list of chargers near you will populate.
While I didn’t get the opportunity to try to find chargers on the one-day drive, Audi says that finding EA chargers and their status and availability is easy through both Audi’s MyAudi app (available via smartphone and desktop), and through the MMI. Audi says that drivers can sort by their preferred charging level (Level 1 through DC fast chargers) and navigate to the charger all without leaving Audi’s in-vehicle interface.
Drivers can also perform the search on their phone through EA’s app or through the MyAudi app and send directions to the car either via wireless CarPlay, which is currently available or wireless Android Auto, which is coming on production models, though it wasn’t available in the e-tron GT or the RS e-tron GT that I drove. Drivers can also connect their smartphone through a USB-C port located in the center armrest.
I didn’t get to try the MyAudi app since I am not an owner (it requires tying the vehicle’s VIN to the app to ensure that privacy is maintained), but Audi says that drivers can plan a route on their MyAudi app, and the system will automatically include charge stops along the way to ensure that they arrive with plenty of battery in reserve.
For those luxury buyers who want a bit more support to make a seamless transition to an all-electric luxury car, Audi is launching what they call Audi Care for EVs with the e-tron GT and RS e-tron GT. At participating dealers, owners can pay an additional $999 plus tax to get vehicle servicing for four years that includes high-wear items like wipers and brake pads, available valet pick-up and drop-off for service appointments, mobile service (tire changes, basic maintenance) and, if an owner needs it, up to 10 free tows to an Audi center per year. Audi is also offering seven free days of rentals from Audi by Silvercar with the purchase of an e-tron GT or a RS e-tron.
The e-tron GT and the RS e-tron GT blend features from both the e-tron (the SUV) and the Audi R8, and both GTs get dual screens that offer tons of features for drivers and passengers. The 12.3-inch virtual cockpit in front of the driver is highly customizable, like it is on most modern Audis today, offering everything from map views to battery status access with few simple inputs on the steering wheel.
The system makes navigating a breeze and drivers or passengers can use voice control to set destinations by simply pressing the button on the steering wheel and giving the car an address, point of interest or city.
The voice system is surprisingly robust and while it was a bit laggy when I used it, it recognizes natural language inputs and verbally prompts the speaker to use specific terms when choosing between two options — say canceling a route and putting in a new destination versus making a stopover. Never once did I have to try multiple times to get the system to recognize what I wanted to do.
The 10.1-inch infotainment system in the center console offers everything from drive mode selection to specific Audi apps, navigation options, optional massage, heat and cooled seats, and much more.
The Audi MMI center screen is touch capacitive and users can drag and drop icons around, allowing owners and their passengers to customize the home screen in any way. The seat heater, cooler and the massage can all be run at the same time, should someone so desire (and have the right equipment), all from the MMI.
Both GTs are pushing $100,000, and for that, some buyers may want just a little bit more razzle dazzle.
For the launch year, Audi is offering one pricey, but special option on the RS e-tron GT: the Year One package. For $20,350, owners get the “carbon performance” package with features like carbon-fiber trim, illuminated door sills, black badges and rear-wheel steering, along with special 21-inch wheels, red ceramic brake calipers, red seatbelts and red stitching inside.
For those who want the prestige, power and advanced technology of a luxury brand, in an electric halo grand tourer that doesn’t (necessarily) come with all the flash, the 2022 Audi e-tron GT and Audi RS e-tron GT fit the bill. Both are on sale now.
Spotify’s recently launched live audio app and Clubhouse rival, Spotify Greenroom, has a long road ahead of it if it wants to take on top social audio platforms like Clubhouse, Airtime, Spoon and others, not to mention those from top social networks, like Twitter and Facebook. To date, the new Greenroom app has only been downloaded a total of 141,000 times on iOS, according to data from app intelligence firm Sensor Tower. This includes downloads from its earlier iteration, Locker Room — an app Spotify acquired to make its move into live audio.
On Android, Google Play data indicates the app has been installed over 100,000 times, but Sensor Tower cannot yet confirm this figure.
For comparison, Clubhouse today has 30.2 million total installs, 18.7 million of which are on iOS, Sensor Tower says.
Other top audio apps include Airtime, with 11.4 million iOS installs, out of a total of 14.3 million (including Android); and Spoon, with 7.6 million iOS installs, out of a total of 27.3 million.
International apps like UAE’s Yalla and China’s Lizhi are massive, as well, with the former sporting 48.1 total installs, 3.8 million of which are on iOS. The latter has 29.5+ million total installs, but only a handful on iOS.
There are other newcomers that have managed to stake smaller claims in the social audio space, too, including Fishbowl (759,000 total installs), Cappuccino (497,000 installs), Riff (339,000 installs) and Sonar (154,000 installs.)
Image Credits: Sensor Tower. The firm analyzed 34 social audio apps. The chart shows those with the most installs.
Spotify Greenroom’s launch last month, meanwhile, seems to have attracted only a small fraction of Spotify’s larger user base, which has now grown to 365 million monthly active users.
The majority of Greenroom’s installs — around 106,000 — took place after Greenroom’s official launch on July 16, 2021 through July 25, 2021, Sensor Tower says. Counting only its Greenroom installs, the app is ranked at No. 12 among social audio apps. It follows Tin Can, which gained 127,000 installs since launching in early March.
Because Greenroom took over Locker Room’s install base, some portion of Greenroom’s total iOS installs (141K) included downloads that occurred when the app was still Locker Room. But that number is fairly small. Sensor Tower estimates Locker Room saw only around 35,000 total iOS installs to date. That includes the time frame of October 26, 2020 — the month when the sports chat app launched to the public — up until the day before Greenroom’s debut (July 15, 2021).
We should also point out that downloads are not the same thing as registered users, and are far short of active users. Many people download a new app to try it, but then abandon it shortly after downloading it, or never remember to open it at all.
That means the number of people actively using Greenroom at this time, is likely much smaller that these figures indicate.
Spotify declined to comment on third-party estimates.
While Sensor Tower looked at competition across social audio apps on the app stores, Spotify’s competition in the live audio market won’t be limited to standalone apps, of course.
Other large tech platforms have more recently integrated social audio into their apps, too, including Facebook (Live Audio Rooms), Twitter (Spaces), Discord (Stage Channels) and trading app Public. A comparison with Greenroom here is not possible, as these companies would have to disclose how many of their active users are engaging with live audio, and they have not yet done so.
Despite what may be a slower uptake, Greenroom shouldn’t be counted out yet. The app is brand-new, and has time to catch up if all goes well. (And if the market for live audio, in general, continues to grow — even though the height of Covid lockdowns, which prompted all this live audio socializing in the first place, seems to have passed.)
Spotify’s success or failure with live audio will be particularly interesting to watch given the potential for the company to cross-promote live audio shows, events, and artist-produced content through its flagship streaming music application. What sort of programming Greenroom may later include is still unknown, however.
Following Spotify’s acquisition of Locker Room maker Betty Labs, the company said it would roll out programmed content related to music, culture, and entertainment, in addition to sports. It also launched a Creator Fund to help fuel the app with new content.
But so far, Spotify hasn’t given its users a huge incentive to visit Greenroom.
The company, during its Q2 2021 earnings, explained why. It said it first needed to get Greenroom stabilized for a “Spotify-sized audience,” which it why it only soft-launched the app in June. Going forward, Spotify says there will be “more tie-ins” with the main Spotify app, but didn’t offer any specifics.
“Obviously we’ll leverage our existing distribution on Spotify,” noted Spotify CEO Daniel Ek. “But this feels like a great way to learn, experiment and iterate, much faster than if we had to wait for a full on integration into the main app,” he added.
Cairo and Dubai-based ride-sharing company Swvl plans to go public in a merger with special purpose acquisition company Queen’s Gambit Growth Capital, Swvl said Tuesday. The deal will see Swvl valued at roughly $1.5 billion.
Swvl was founded by Mostafa Kandil, Mahmoud Nouh and Ahmed Sabbah in 2017. The trio started the company as a bus-hailing service in Egypt and other ride-sharing services in emerging markets with fragmented public transportation.
Its services, mainly bus-hailing, enables users to make intra-state journeys by booking seats on buses running a fixed route. This is pocket-friendly for residents in these markets compared to single-rider options and helps reduce emissions (Swvl claims it has prevented over 240 million pounds of carbon emission since inception).
After its Egypt launch, Swvl expanded to Kenya, Pakistan, Jordan and Saudi Arabia. The company also moved its headquarters to Dubai as part of its strategy to become a global company.
Swvl offerings have expanded beyond bus-hailing services. Now, the company offers inter-city rides, car ride-sharing, and corporate services across the 10 cities it operates in across Africa and the Middle East.
Queen’s Gambit, the women-led SPAC in charge of the deal, raised $300 million in January and added $45 million via an underwriters’ overallotment option focusing on startups in clean energy, healthcare and mobility sectors.
The statement also mentions a group of investors — Agility, Luxor Capital and Zain Group — which will contribute $100 million through a private investment in public equity, or PIPE.
Per Crunchbase, Swvl has raised over $170 million. From an African perspective, Swvl features as one of the most venture-backed startups on the continent. The company has been touted to reach unicorn status in the past and will when this SPAC merger is completed.
The company will aptly trade under the ticker SWVL. The listing will make it the first Egyptian startup to go public outside Egypt and the second to go public after Fawry. It will also make the mobility company the largest African unicorn debut on any U.S.-listed exchange, beating Jumia’s debut of $1.1 billion on the NYSE. In the Middle East, Swvl joins music-streaming platform Anghami as the second startup to go public via a SPAC merger.
Swvl had annual gross revenue of $26 million in 2020, according to the statement, and the company expects its annual gross revenue to increase to $79 million this year and $1 billion by 2025 after expanding to 20 countries across five continents.
On why Queen’s Gambit picked Swvl for this deal, Victoria Grace, founder and CEO, said in a statement that the company fit the profile of what she was looking for: “a disruptive platform that solves complex challenges and empowers underserved populations.”
“Having established a leadership position in key emerging markets, we believe Swvl is ready to capitalize on a truly global market opportunity,” she added.
In May, TechCrunch wrote that SPACs didn’t target African startups for several reasons, including a lack of global appeal and private capital and market satisfaction. Judging by Grace’s comments, Swvl has that global appeal and is ready to venture into the public market despite being in operation for just four years.
As environmental issues really came of age in the 1990s, certain German automakers were meeting in secret groups to make sure their cars would continue to industriously contribute to greenhouse gas emissions. According to the European Union, Volkswagen, Audi, Porsche, BMW and Mercedes-Benz parent company Daimler have been illegally colluding to restrict competition in emission cleaning for new diesel passenger cars, essentially slowing the deployment of cleaner emissions tech. On Thursday, the EU issued fines of $1 billion (€875 million) to Volkswagen and BMW for their involvement in the emissions cartel.
“The five car manufacturers Daimler, BMW, Volkswagen, Audi and Porsche possessed the technology to reduce harmful emissions beyond what was legally required under EU emission standards,” said executive VP of the EU Commission Margrethe Vestager in a statement. “But they avoided to compete on using this technology’s full potential to clean better than what is required by law. So today’s decision is about how legitimate technical cooperation went wrong. And we do not tolerate it when companies collude. It is illegal under EU Antitrust rules. Competition and innovation on managing car pollution are essential for Europe to meet our ambitious Green Deal objectives. And this decision shows that we will not hesitate to take action against all forms of cartel conduct putting in jeopardy this goal.”
All parties acknowledged their involvement and agreed to settle. Volkswagen, which owns Audi and Porsche, will have to pay around $595 million, and BMW will pay $442 million. Daimler would have had to pay around $861 million, but the company is evading fines by being the whistleblower. So we guess Daimler just gets off scot-free?
BMW made a net profit of $4.62 billion last year, and VW made about $12.2 billion and nearly $23 billion in 2019, so this fine sort of feels like a slap on the wrist. And let us remember, this is not the first time VW has gotten into an emissions scandal.
In 2015, the U.S. Environmental Protection Agency issued a notice of violation of the Clean Air Act to VW for intentionally adding software into its diesel engines to make it look like it was following emissions controls, when in reality its cars were actually producing far more than the legal amount.
In its action against the companies, the EU specifically homed in on the agreement reached by the companies on the sizes of tanks used for AdBlue, a solution that mixes with diesel car exhaust to neutralize harmful pollutants. The companies agreed not to compete on making cars cleaner even though they had the tech to do so.
Der Spiegel first broke the news about the cartel in 2017, and the companies set to work greenwashing. In the same year, all of the involved parties, as well as Ford Motor Company, joined forces to create a high-power charging network for EVs called Ionity. The plan was to build and operate around 400 charging stations across Europe by 2020, but it looks like Ionity only managed to install 300 across Europe, and it even significantly increased the price of a charge by 500% last year.
Earlier this week, VW’s heavy-truck business, the Traton Group, Daimler Truck and Volvo group joined up to invest nearly $593 million in a network of public charging stations for electric heavy-duty long-haul trucks and buses around Europe.
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.
This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.
Back on theme, we had a lot to get through this morning, so inside the show you can find the following and more:
See you this Thursday at the live show!
In March, Spotify announced it was acquiring the company behind the sports-focused audio app Locker Room to help speed its entry into the live audio market. Today, the company is making good on that deal with the launch of Spotify Greenroom, a new mobile app that allows Spotify users worldwide to join or host live audio rooms, and optionally turn those conversations into podcasts. It’s also announcing a Creator Fund which will help to fuel the new app with more content in the future.
The Spotify Greenroom app itself is based on Locker Room’s existing code. In fact, Spotify tells us, current Locker Room users will see their app update to become the rebranded and redesigned Greenroom experience, starting today.
Where Locker Room had used a white-and-reddish orange color scheme, the new Greenroom app looks very much like an offshoot from Spotify, having adopted the same color palette, font and iconography.
To join the new app, Spotify users will sign in with their current Spotify account information. They’ll then be walked through an onboarding experience designed to connect them with their interests.
Image Credits: Spotify
For the time being, the process of finding audio programs to listen to relies primarily on users joining groups inside the app. That’s much like how Locker Room had operated, where its users would find and follow favorite sports teams. However, Greenroom’s groups are more general interest now, as it’s no longer only tied to sports.
In time, Spotify tells us the plan is for Greenroom to leverage Spotify’s personalization technology to better connect users to content they would want to hear. For example, it could send out notifications to users if a podcaster you already followed on Spotify went live on Spotify Greenroom. Or it could leverage its understanding of what sort of podcasts and music you listen to in order to make targeted recommendations. These are longer-term plans, however.
As for Spotify Greenroom’s feature set, it’s largely on par with other live audio offerings — including those from Clubhouse, Twitter (Spaces) and Facebook (Live Audio Rooms). Speakers in the room appear at the top of the screen as rounded profile icons, while listeners appear below as smaller icons. There are mute options, moderation controls, and the ability to bring listeners on stage during the live audio session. Rooms can host up to 1,000 people, and Spotify expects to scale that number up later on.
Image Credits: Spotify
Listeners can also virtually applaud speakers by giving them “gems” in the app — a feature that came over from Locker Room, too. The number of gems a speaker earned displays next to their profile image during a session. For now, there’s no monetary value associated with the gems, but that seems an obvious next step as Greenroom today offers no form of monetization.
It’s worth noting there are a few key differentiators between Spotify Greenroom and similar live audio apps. For starters, it offers a live text chat feature that the host can turn on or off whenever they choose. Hosts can also request the audio file of their live audio session after it wraps, which they can then edit to turn into a podcast episode.
Perhaps most importantly is that the live audio sessions are being recorded by Spotify itself. The company says this is for moderation purposes. If a user reports something in a Greenroom audio room, Spotify can go back to look into the matter, to determine what sort of actions may need to be taken. This is an area Clubhouse has struggled with, as its users have sometimes encountered toxicity and abuse in the app in real-time, including in troubling areas like racism and misogyny. Recently, Clubhouse said it had to shut down a number of rooms for antisemitism and hate speech, as well.
Spotify says the moderation of Spotify Greenroom will be handled by its existing content moderation team. Of course, how quickly Spotify will be able react to boot users or shut down live audio rooms that are in violation of its Code of Conduct remains to be seen.
While the app launching today is focused on user-generated live audio content, Spotify has larger plans for Greenroom. Later this summer, the company plans to make announcements around programmed content — something it says is a huge priority — alongside the launch of other new features. This will include programming related to music, culture, and entertainment, in addition the to sports content Locker Room was known for.
Image Credits: Spotify
The company also says it will be marketing Spotify Greenroom to artists through its Spotify for Artists channels, in hopes of seeding the app with more music-focused content. And it confirmed that monetization options for creators will come further down the road, too, but isn’t talking about what those may look like in specific detail for the moment.
In addition, Spotify is today announcing the Spotify Creator Fund, which will help audio creators in the U.S. generate revenue for their work. The company, however, declined to share any details on this front, either– like the size of fund, how much creators would receive, time frame for distributions, selection criteria or other factors. Instead, it’s only offering a sign-up form for those who may be interested in hearing more about this opportunity in the future. That may make it difficult for creators to weigh their options, when there are now so many.
Spotify Greenroom is live today on both iOS and Android across 135 markets around the world. That’s not quite the global footprint of Spotify itself, though, which is available in 178 markets. It’s also only available in the English language for the time being, but plans on expanding as it grows.
In April, Facebook announced a slew of new audio products, including its Clubhouse clone, called Live Audio Rooms, which will be available across both Facebook and Messenger. Since May, Facebook has been publicly testing the audio rooms feature in Taiwan with public figures, but today the company hosted its first public test of Live Audio Rooms in the U.S. The event itself was hosted by Facebook CEO Mark Zuckerberg, who chatted with fellow execs and creators.
Joining Zuckerberg were Facebook VP and Head of Facebook Reality Labs Andrew “Boz” Bosworth, Head of Facebook App Fidji Simo and three Facebook Gaming creators, including StoneMountain64, QueenEliminator and TheFierceDivaQueen.
Image Credits: Facebook screenshot
The creators used their time in the Audio Room to talk more about their gaming journeys on Facebook, what kind of games they were streaming and other gaming-related matters. Zuckerberg also briefly teased new gaming features, including a new type of post, coming soon, called “Looking for Players.” This post type will help creators find others in the community to play games with while they’re streaming.
In addition, badges that are earned from livestreams will now carry over to fan groups, Zuckerberg said, adding that it was a highly requested feature by creators and fans alike.
Fan groups will also now become available to all partnered creators on Facebook Gaming, starting today, and will roll out to others in the coming weeks.
Image Credits: Facebook screenshot
The experience of using the Live Audio Room is very much like what you’d expect on another platform, like Clubhouse or Twitter Spaces. The event’s hosts appear in rounded profile icons at the top of the screen, while the listeners appear in the bottom half of the screen, as smaller icons. In between is a section that includes people followed by the speakers.
The active speaker is indicated with a glowing ring in shades of Facebook blue, purple and pink. If verified, a blue check appears next to their name.
Listeners can “Like” or otherwise react to the content as it streams live using the “Thumbs Up” button at the bottom of the screen. And they can choose to share the Audio Room either in a Facebook post, in a Group, with a friend directly or through other apps.
Image Credits: Facebook screenshot
A toggle switch under the room’s three-dot “more” menu lets you turn on or off auto-generated captions, for accessibility. From here, you can also report users or any issues or bugs you encountered.
The Live Audio Room today did not offer any option for raising your hand or joining the speakers on stage — it was more of a “few-to-many” broadcast experience.
Before today, TechCrunch received a couple of tips from users who reported seeing the Audio Rooms option appear for them in the Facebook app. However, the company told us it had only tested Live Audio Rooms in the U.S. with employees.
During the test period, Live Audio Rooms are only available on iOS and Android, we’re told.
Zuckerberg also used today’s event to talk more broadly about Facebook’s plans for the creator economy going forward.
“I think a good vision for the future is one where a lot more people get to do creative work and work that they enjoy, and fewer people have to do work that they just find a chore. And, in order to do that, a lot of what we need to do is basically build out a bunch of these different monetization tools,” explained Zuckerberg. “Not all creators are going to have the same business model. So having the ability to basically use a lot of different tools like Fiji [Simo] was talking about — for some people it might be, Stars or ad revenue share or subscriptions or selling things or different kinds of things like that — that will be important and part of making this all add up.”
He noted also that the tools Facebook is building go beyond gaming, saying that Facebook intends to support journalists, writers and others — likely a reference to the company’s upcoming Substack clone, Bulletin, expected to launch later this month.
Zuckerberg additionally spoke about how the company won’t immediately take a cut of the revenue generated from creators’ content.
“Having this period where we’re not taking a cut and more people can get into these kinds of roles, I think is going to be a good thing to do — especially given how hard hit a lot of parts of the economy have been with COVID and the pandemic,” he said.
More realistically, of course, Facebook’s decision to not take an immediate cut of some creator revenue is a decision it’s making in order to help attract more creators to its service, in the face of so much competition across the industry.
Clubhouse, for example, is currently wooing creators with a payments feature, where creators keep 100% of their revenue. And it’s funding some creators’ shows. Twitter, meanwhile, is tying its audio product Spaces to its broader set of creator tools, which now include newsletters, tips and, soon, a subscription platform dubbed Super Follow.
Zuckerberg didn’t say during today’s event when Live Audio Rooms would be available to the public, but said the experience would roll out to “a lot more people soon.”
Apple announced a handful of privacy-focused updates at its annual software developer conference on Monday. One called Private Relay particularly piques the interest of Chinese users living under the country’s censorship system, for it encrypts all browsing history so nobody can track or intercept the data.
As my colleague Roman Dillet explains:
When Private Relay is turned on, nobody can track your browsing history — not your internet service provider, anyone standing in the middle of your request between your device and the server you’re requesting information from. We’ll have to wait a bit to learn more about how it works exactly.
The excitement didn’t last long. Apple told Reuters that Private Relay won’t be available in China alongside Belarus, Colombia, Egypt, Kazakhstan, Saudi Arabia, South Africa, Turkmenistan, Uganda and the Philippines.
Apple couldn’t be immediately reached by TechCrunch for comment.
Virtual private networks or VPNs are popular tools for users in China to bypass the “great firewall” censorship apparatus, accessing web services that are otherwise blocked or slowed down. But VPNs don’t necessarily protect users’ privacy because they simply funnel all the traffic through VPN providers’ servers instead of users’ internet providers, so users are essentially entrusting VPN firms with protecting their identities. Private Relay, on the other hand, doesn’t even allow Apple to see one’s browsing activity.
In an interview with Fast Company, Craig Federighi, Apple’s senior vice president of software engineering, explained why the new feature may be superior to VPNs:
“We hope users believe in Apple as a trustworthy intermediary, but we didn’t even want you to have to trust us [because] we don’t have this ability to simultaneously source your IP and the destination where you’re going to–and that’s unlike VPNs. And so we wanted to provide many of the benefits that people are seeking when in the past they’ve decided to use a VPN, but not force that difficult and conceivably perilous privacy trade-off in terms of trusting it a single intermediary.”
It’s unclear whether Private Relay will simply be excluded from system upgrades for users in China and the other countries where it’s restricted, or it will be blocked by internet providers in those regions. It also remains to be seen whether the feature will be available to Apple users in Hong Kong, which has seen an increase in online censorship in the past year.
Like all Western tech firms operating in China, Apple is trapped between antagonizing Beijing and flouting the values it espouses at home. Apple has a history of caving in to Beijing’s censorship pressure, from migrating all user data in China to a state-run cloud center, cracking down on independent VPN apps in China, limiting free speech in Chinese podcasts, to removing RSS feed readers from the China App Store.
Cash is the predominant method of sending and receiving payments in the Middle East. If you owe someone a cup of coffee or a trip over a long period, repaying via cash is your best bet. This is one problem out of many financial issues that haven’t been addressed in the region.
The good news is that startups are springing up to provide solutions. Last month Telda, a now two-month-old startup in Egypt, raised an impressive sum as pre-seed to offer digital banking services. Today, Ziina, another startup based in Dubai, has closed $7.5 million in seed funding to scale its peer-to-peer (P2P) payment service across the Middle East and North Africa.
Ziina has managed to enlist top global investors and fintech founders in the round. Avenir Growth and Class 5 Global led this latest tranche of financing. Wamda Capital, FJ Labs, Graph Ventures, Goodwater Capital, Jabbar Internet Group, Oman Technology Fund’s Jasoor Ventures, and ANIM also participated.
The founders who took part include Checkout CEO Guillaume Pousaz via his investment fund Zinal Growth; Krishnan Menon, BukuKas CEO, as well as executives from Paypal and Venmo. This adds to a roster of executives and early employees from Revolut, Stripe, Brex, Notion, and Deel that joined Ziina’s round.
According to the company, it has raised over $8.6 million since launching last year. This includes the $850,000 pre-seed raised in May 2020 and $125,000 secured after going through Y Combinator’s Winter batch early this year.
Ziina was founded by Faisal Toukan, Sarah Toukan, and Andrew Gold. It’s the latest addition to the Middle East’s bubbling fintech ecosystem and is capitalising on the region’s rapid adoption of fintech friendly regulation.
The company allows users to send and receive payments with just a phone number —no IBAN or swift code required as is the de facto method in the UAE and some parts of the Middle East. It also claims to be the country’s first licensed social peer-to-peer application “on a mission to simplify finance for everyone.”
After meeting during a hackathon in the U.S., Faisal and Gold began exchanging ideas on how to build wallets, wanting to mirror the successes platforms like WePay, Paytm have had. At the time, VCs seemed to be interested in how the wallets ecosystem intersected with banking.
“The lines between wallets and banking have become really blurred. Every wallet has a banking partner, and people who use wallets use them for their day-to-day needs,” CEO Faisal Toukan said to TechCrunch.
On the other hand, Sarah, who is Faisal’s sister, was on her personal fintech journey in London. There, she attended several meetups headlined by the founders of Monzo and Revolut. With her knowledge and the experience of the other two, the founders decided that solving P2P payments issues was their own way of driving massive impact in the Middle East.
So how far have they gone? “We launched a beta for the market but it’s restricted for regulatory reasons and basically to keep ourselves in check with the ecosystem,” Toukan remarked. “Since then, we’ve gotten regulated. We’ve got a banking partner, one of the three largest banks in the UAE, and we’ve set a new wallet a month from now. That’s also what we were working throughout our period in YC. So it’s been quite an eventful year.”
The fintech sector in MENA is growing fast; in terms of numbers, at a CAGR of 30%. Also, in the UAE, it is estimated that over 450 fintech companies will raise about $2 billion in 2022 compared to the $80 million raised in 2017. Fintechs in the region are focused on solving payments, transfers, and remittances. Alongside its P2P offering, these are the areas Ziina wants to play in, including investment and cryptocurrency services.
According to Toukan, there’s no ease of making online investments, and remittances are done in exchange houses, a manual process where people need to visit an office physically. “So what we’re looking to do is to bring all these products to life in the UAE and expand beyond that. But the first pain point we’re solving for is for people to send and receive money with two clicks,” the CEO affirmed.
Starting with P2P has its own advantages. First, peer-to-peer services is a repeat behavioural mechanism that allows companies to establish trust with customers. Also, it’s a cheaper customer acquisition model. Toukan says that as Zinna expands geographically — Saudi Arabia and Jordan in 2022; and Egypt and Tunisia some years from now — as he wants the company’s wallet to become seamless cross border. “We want a situation where if you move into Saudi or Dubai, you’re able to use the same wallet versus using different banking applications,” he added.
To be on the right side of regulation is key to any fintech expansion, and Toukan says Ziina has been in continuous dialogue with regulators to operate efficiently. But some challenges have stemmed from finding the right banking partners. “You need to make a case to the banks that this is basically a mutually beneficial partnership. And the way we’ve done that is by basically highlighting different cases globally like CashApp that worked with Southern Bank,” he said.
Now that the company has moved past that challenge, it’s in full swing to launch. Presently, Ziina has thousands of users who transacted more than $120,000 on the platform this past month. According to the company, there are over 20,000 users on its waiting list, and they will be onboarded post-launch.
Ziina has already built a team with experience across tech companies like Apple, Uber, Stanford, Coinbase, Careem, Oracle, and Yandex. It plans to double down on hiring with this new investment and customer acquisition and establishing commercial partnerships.
Twitter is updating its app to make its audio chat room feature, Twitter Spaces, a central part of the user experience. Today, the company will begin to roll out a dedicated tab for Twitter Spaces in the main navigation bar of its mobile app, initially on iOS to select users. The feature will see Twitter Spaces gain the middle spot in this bar, in between the Search magnifying glass icon and the bell icon for Notifications. As Spaces is not replacing any other tab, that means the navigation bar will now have to accommodate five icons instead of only four.
Not everyone will see the update immediately. Instead, only around 500 people from the original Spaces beta test will first see the new Spaces discovery tab, as it’s called, when it rolls out today.
Twitter says the tab will showcase the Spaces being hosted by people you follow, but these won’t appear like they do on the Fleet line today at the top of the Timeline. Instead, the discovery tab will present Spaces in a more visual format, similar to the promotion cards that appear when you tweet about upcoming Spaces.
Image Credits: Twitter
The company told TechCrunch that, even though Spaces can be fun, it understands the live events have been hard to find and keep track of, given there’s been no dedicated place where Spaces can be discovered. The new tab aims to change that.
Within the tab, users will be able to see active Spaces with more details, including Space names, hosts, and people you know who are participating. The tab will also allow users to manage reminders for scheduled Spaces so you’re be notified when they’re about to begin, and give Twitter feedback about which Spaces you’d like to see more of.
App researcher Jane Manchun Wong had uncovered Twitter’s plans to revamp its app to include Spaces on the nav bar last month.
Currently, only Twitter users with at least 600 followers have been granted the ability to host Spaces, and Twitter told us that figure has not changed with the launch of the tab. However, the company still has grand plans for the Spaces product, including not only scheduled Spaces which are now becoming easier to find with this discovery feature, but also things like ticketed events, co-hosted events, accessibility improvements and more.
Putting Spaces directly in navigation bar represents a big push for Twitter’s audio chat rooms, which have otherwise been fairly easy to ignore by those who aren’t that interested in Twitter’s Clubhouse competitor. It also arrives at a time when Clubhouse is expanding access to its own social audio app. Following its debut on Android, Clubhouse said 2 million Android users have already joined its platform.
Twitter, meanwhile, hasn’t yet publicized how many users have tested out Spaces at this point, either as a host or an end user.
Alongside today’s launch, Twitter will also begin to roll out another Spaces feature that was previously being tested: displaying the purple ring around someone’s profile pictures from the Home Timeline.
Currently, profile pics can be highlighted with a blue ring that takes you to the user’s Fleets when tapped, but the new purple ring will indicate they’re actively using Spaces at that time. You can then tap their profile pic to join them. The feature makes it easier to find Spaces while you’re just scrolling your Twitter Timeline as usual.
After the new Spaces tab is tried out with the original beta test group, it will begin rolling out more people, Twitter says.
Per a recent report by Bain & Co., e-commerce is expected to grow to $28.5 billion in MENA by 2022 from a 2019 value of $8.3 billion. Egypt, one of the most active e-commerce countries in the region, is anticipated to grow 33% annually to reach $3 billion by 2022.
But for any e-commerce business to thrive, its last-mile delivery arm has to be well figured out. Bosta is one such company in Egypt helping small businesses with logistics and last-mile delivery. Today, the company is announcing it has closed a Series A investment of $6.7 million. U.S. and Middle East VC firm Silicon Badia led the round, with participation from 4DX Ventures, Plug and Play Ventures, Wealth Well VC, Khwarizmi VC, as well as other regional and global investors.
This investment comes a year after the company raised a $2.5 million round, which takes its total investment raised to $9.2 million.
The idea for Bosta came during Ezzat’s time at Lynks, his previous consumer goods startup. Lynks, the first YC-backed company from Egypt, allows people in Egypt to buy brands from the U.S., China and the U.K.
As co-founder and COO at Lynks, Ezzat was responsible for logistics, international clearance and last-mile delivery. In 2016, Egypt experienced an economic downturn coupled with the Egyptian pound devaluation and government restriction on imports. For Lynks it meant slow growth, but Ezzat was concerned about fixing the last-mile delivery bit, which, according to him, was a huge pain point.
“My nightmare was always the last mile. And at that time, you know that e-commerce is still very, very small. So it’s only 1% of the whole retail value,” he told TechCrunch. “So I was always thinking, how come if we want the e-commerce to grow, and we don’t have any strong company when it comes to last-mile because, in the end, every transaction on an e-commerce platform is a transaction on a courier platform.”
E-commerce is a fragmented sector where 80% of transactions come from small businesses selling on Facebook, Instagram and social media in general. Most of these businesses lack a strong delivery experience, and Ezzat left Lynks the following year to start Bosta.
Being in the parcel delivery industry, Bosta wants to help these companies to grow profitably. It also tries to simplify logistics and allow its customers to have full control over the delivery process.
“You can use Bosta to get anything to your doorstep. You buy in our local currency, and we buy everything, handle the shipping, customs, clearance and bring it to your doorstep,” the CEO added.
The company doesn’t own fleets of vehicles to carry out operations. Instead, it operates an Uber-like model where drivers sign up, are made contractors and make money when a delivery is completed.
Since 2017, the company has delivered more than 4 million packages to businesses, more than half since the pandemic outbreak last year. Bosta completes more than 300,000 deliveries per month, which is a 3.5x increase from when it raised its previous round, Ezzat stated. He also claims that more than 2,200 businesses use its platform daily and achieve a 95% delivery success rate.
Asides from small businesses, Bosta works with major e-commerce platforms like Souq (an Amazon company) and Jumia. Depending on the volume of goods transported, Bosta charges small businesses about 35-40 Egyptian pounds, while the big players are charged less, at 20-25 Egyptian pounds.
Speaking on the investment, Fawaz H Zu’bi said in a statement: “E-commerce has always had amazing potential in our region but was always being held back by something whether payments, logistics, market fragmentation, or customer adoption. We are excited to finally see companies like Bosta emerge to tackle some of these issues and help e-commerce realize its full promise and potential in a region that has now ‘turned on’ digitally.”
In the next two years, Bosta plans to deliver more than 15 million parcels in Egypt and serve over 20,000 businesses. The funds will be used for those causes, as well as expanding operations across Africa, MENA and the GCC.
“The investment is to dominate Egypt,” said Ezzat. “We want to make sure that we deliver the next day across Egypt, not just in Cairo, where we currently do. And to be a market leader when it comes to e-commerce on the continent and be profitable. This is the main target for us now and also to start operations in Saudi Arabia.”