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Nana nabs $6M for an online academy and marketplace dedicated to appliance repair

A lot of the focus in online education — and, let’s face it, education overall — has been about professional development for knowledge workers, education for K-12 and how best to deliver cost-effective, engaging higher learning to those in college and beyond. But in what might be a sign of the times, today a startup that’s focused on e-learning and the subsequent job market for a completely different end of the spectrum — home services — is announcing some funding to continue building out its business in earnest.

Nana, which runs a free academy to teach people how to fix appliances, and then gives students the option of becoming a part of its own marketplace to connect them to people needing repairs — has picked up $6 million.

The seed round is being led by Shripriya Mahesh of Spero Ventures; Next Play Ventures (ex-LinkedIn CEO Jeff Weiner’s new fund), Lachy Groom, Scott Belsky, Geoff Donaker of Burst Capital and Michael Staton of Learn Capital are among those also participating.

Nana has now raised $10.7 million, with past backers including Alpha Bridge Ventures, Bob Lee and the Uber Syndicate, an investment vehicle to back Uber alums in new ventures. Founder and CEO David Zamir is not actually an Uber alum, but one of his first employees, VP of Engineering Oliver Nicholas is an early Uber engineer and the company has also found a lot of traction of Uber drivers this year, after many found themselves out of work after the chilling effect that the pandemic had on ridesharing.

Nana — full name Nana Technologies (and not to be confused with Nana Technology, tech built for older adults) — is partly a labor/future of work play, partly an educational play, partly a tech/IoT play and partly an ecological play, in the eyes of Zamir, who himself trained as an appliance repairperson, running his own successful business in the Bay Area before pivoting it into a training platform and marketplace.

“There are 5.9 million tons of municipal solid waste [which includes lots of electronics like washing machines, blenders and everything in between] in the U.S.,” he said in an interview, “and only 50% of that is capable of getting recycled. We’re in a vicious cycle with appliances, and it’s partly because there aren’t enough people with the knowledge to repair them. But what if you had the liquidity to do that? We’re talking about creating jobs, but also saving the environment.”

Nana’s proposition starts with free lessons to fix a range of appliances — currently dishwashers, refrigerators, ovens, stoves, washers and dryers — and their typical breakdown/poor performance issues to anyone who wants to know how to repair them. These classes are available to anyone — an individual simply interested in learning how to fix a machine, but more likely someone looking to pick up a skill and then use it to make some money.

Once you take and pass a course — currently remote — you have the option (but not requirement) to register on Nana’s platform to become a repair person who picks up jobs through it to get jobs fixing that particular issue. Nana already has partnerships with major appliance and warranty companies, including GE, Miele, Samsung, Assurant, Cinch and First American Home Warranty, so this is how it gets most of its work in, but it also accepts direct requests from consumers for repair of dishwashers, refrigerators, ovens, stoves, washers and dryers.

Over time, Zamir said, the plan is not just to take in jobs and send out technicians to fix things in an Uber-style dispatch service — but to expand it to fit the kinds of next-generation appliances that are being built today, with IoT diagnostic monitoring and helping also to integrate these appliances into connected homes. It also seems to be slowly expanding into other home services too, alongside appliance repair (which remains its main business).

Nana has to date registered hundreds of technicians in 12 markets across the U.S. and said it expects to expand to 20 markets by the end of 2021.

Nana has an unlikely founder story that speaks to how so much of the tech world is still about hustle and finding opportunities in the margins.

Founder and CEO David Zamir hails from Israel, but unlike many of the transplants you may come across from there to the Bay Area tech world, he’s not a tech guy by education, training or work experience. He used to run clothing stores in Tel Aviv and vaguely liked the idea of being involved in a tech business at some point — Israel loves to call itself “startup nation,” so that bug is bound to bite even those who don’t study computer science or engineering — but he didn’t know what to do or where to begin.

“The clothing business didn’t make much money,” he said. So after a period Zamir and his American wife decided to move to the U.S. and try their luck there.

While initially based on the east coast near her family and wondering about what kind of job to pursue, Zamir spoke with a friend of his in Toronto who was working as an independent tradesperson fixing appliances, and the friend suggested this as an option, at least for a while.

“So I hopped on an airplane to shadow my friend,” he recalled. “The lightbulb went off. I thought, I should do this in San Francisco,” where he had been wanting to move to crack in to the tech world, somehow. “I thought that I’d start with fixing appliances while I figured out how to find my way into tech.”

That turned into more than a temporary income stopgap, of course. After finding that his business was taking off, Zamir saw that technology would be the avenue to growing it.

He was helped in part to build the idea and the business through his grit. Josh Elman, the famous tech investor, complained about a broken dryer back in April, and asked the Twitter hive mind whether he should get a new one or go through the pain of fixing it. Someone flagged the question to Zamir, who reached out and connected Elman with one of Nana’s online teaching technicians. Twelve hours later, Elman’s drier was diagnosed (by Elman), on its way to getting fixed, and Elman signed on as an advisor to the company.

Move fast and fix things

The world of tech is all about building new things and solving problems, with “breaking” being more synonymous with disruption (= “good”) and fearlessness (see: Facebook’s old mantra to its early employees to move fast and break things). But behind that, there is an interesting disconnect between the tech version of “broken” and objects that are actually “broken” in the real world.

Many of us these days find using apps and other digital interfaces second-nature, but most of us would have no idea how to repair or work with much more basic electronic systems. And nor do most of us want to. More often than not, we give up on it, decide it’s not worth fixing and click on Amazon et al. to get a new shiny object.

Looked at on a wider scale, this is actually a big problem.

Electronics can be recycled, but in reality only about half the materials can be usefully reused. Meanwhile, Nana estimates that the appliance repair market is a $4 billion opportunity, with some 80 million appliances in need of being serviced annually in the U.S. But currently there are only some 31,000 trained technicians in the market. Nana estimates that to meet the demand of growing numbers, an additional 28,000 new technicians will be needed by 2025.

At the same time, the move to automation in many skilled labor jobs is putting people out of work: research from the Brookings Institution estimates that some 30 million people will lose their jobs in coming years because of it.

The idea here is that a platform like Nana can help some of those people retrain to fill the gap for appliance technicians, while at the same time extending the life of people’s appliances in a less painful way — putting less stuff into landfill — while at the same time expanding knowledge for anyone who cares for it.

Zamir said that Nana was named after his mother, who raised David as a single parent after his father passed away, a reference to working hard and being practical.

That sentimentality seems to motivate him in a bigger way, too: Zamir himself is a guy with a lot of heart and emotion vested into the concept of his startup. When I told him an anecdote of how our dishwasher broke down earlier this year and both a customer service rep from the maker (Siemens) and a separate repair person advised me to replace it, he got visibly agitated over our video call, as if the subject was something political or significantly more grave than a story about a dishwasher.

“I am not a supporter of what they told you,” he said in an angry voice. “It’s really upsetting me.” (I calmed him down a little, I think, when I told him that I myself uninstalled the broken dishwasher and installed the new one myself, because COVID.)

Zamir said that there are no plans to charge for its academy courses, nor to tie people into signing up with Nana to work once they take the courses. The fact that it provides a lot of inbound jobs attracts enough turnover — between 40% and 60% of those taking courses stay on to work when they took in-person classes, and for now the online figures are between 15% and 35%.

“It’s still early days,” he said, “but we’re finding the take up impressive… Most want to participate in the marketplace.” He says that there are other call-out services where they could register, but the tech that Nana has built makes its system more efficient, and that means better returns.

All of this has played well with those who have become Nana’s investors. People like Jeff Weiner — who in his time as CEO of LinkedIn led the company to acquire Lynda as part of a bigger emphasis on the importance of skills training and education — see the opportunity and need to provide an equivalent platform not just for knowledge workers but those who have more manual jobs, too.

“We are excited by Nana’s vision of providing training, access and opportunity for rewarding, satisfying work while also filling a critical gap in our economy,” said Shripriya Mahesh of Spero Ventures, in a statement. “Nana has created a new, scalable approach to giving people the agency, tools and support systems they need to build new skills and pursue fulfilling work opportunities.”

The round was oversubscribed in the end, and Nana shouldn’t find it too hard to raise again if it sticks to its plan and the market continues to grow as it has. That does not seem to be the motivation for Zamir, though.

“We just think it’s super important to build Nana for the people,” he said.

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Omni storage & rentals fails, shutters, sells engineers to Coinbase

$35 million-funded Omni is packing up and shutting down after struggling to make the economics of equipment rentals and physical on-demand storage work out. It’s another victim of a venture capital-subsidized business offering a convenient service at an unsustainable price.

The startup fought for a second wind after selling off its physical storage operations to competitor Clutter in May. Then sources tell me it tried to build a whitelabel software platform for letting brick-and-mortar merchants rent stuff like drills or tents as well as sell them so Omni could get out of hands-on logistics. But now the whole company is folding, with Coinbase hiring roughly 10 of Omni’s engineers.

“They realized that the core business was just challenging as architected” a source close to Omni tells TechCrunch. “The service was really great for the consumer but when they looked at what it would take to scale, that would be difficult and expensive.” Another source says Omni’s peak headcount was around 70.

The news follows TechCrunch’s report in October that Omni had laid off operations teams members and was in talks to sell its engineering team to Coinbase. Omni had internally discussed informing its retail rental partners ahead of time that it would be shutting down. Meanwhile, it frantically worked to stop team members from contacting the press about the startup’s internal troubles.

We’ll be winding down operations at Omni and closing the platform by the end of this year. We are proud of what we built and incredibl y thankful for everyone who supported our vision over the past five and a half years” an Omni spokesperson says. Omni CEO Tom McLeod did not respond to multiple requests for comment. Oddly, Omni was still allowing renters to pay for items as of this morning, though it’s already shut down its blog and hasn’t made a public announcement about its shut down.

Coinbase has reached an agreement with Omni to hire members of its engineering team. We’re always looking for top-tier engineering talent and look forward to welcoming these new team members to Coinbase” a Coinbase spokesperson tells us. The team was looking for more highly skilled engineers they could efficiently hire as a group, though it’s too early to say what they’ll be working on.

Omni originaly launched in 2015, offering to send a van to your house to pick up and index any of your possession, drive them to a nearby warehouse, store them, and bring them back to you whenever you needed for just a few dollars per month. It seemed too good to be true and ended up being just that.

Eventually Omni pivoted towards letting you rent out what you were storing so you and it could earn some extra cash in 2017. Sensing a better business model there, it sold its storage business to Softbank-funded Clutter and moved to helping retail stores run rental programs. But that simply required too big of a shift in behavior for merchants and users, while also relying on slim margins.

Omni Rentals

One major question is whether investors will get any cash back. Omni raised $25 million from cryptocurrency company Ripple in early 2018. Major investors include Flybridge, Highland, Allen & Company, and Founders Fund, plus a slew of angels.

The implosion of Omni comes as investors are re-examining business fundamentals of startups in the wake of Uber’s valuation getting cut in half in the public markets and the chaos at WeWork ahead of its planned IPO. VCs and their LPs want growth, but not at the cost of burning endless sums of money to subsidize prices just to lure customers to a platform.

It’s one thing if the value of the service is so high that people will stick with a startup as prices rise to sustainable levels, as many have with ride hailing. But for Omni, ballooning storage prices pissed off users as on-demand became less afforable than a traditional storage unit. Rentals were a hassle, especially considering users had to pick-up and return items themselves when they could just buy the items and get instant delivery from Amazon.

Startups that need a ton of cash for operations and marketing but don’t have a clear path to ultra-high lifetime value they can earn from customers may find their streams of capital running dry.

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Wardrobe picks up $1.5 million for a new fashion rental marketplace

Wardrobe, a new peer-to-peer fashion rental marketplace, has today announced the close of a $1.5 million seed round and its public launch out of beta.

The funding was led by angel investor Cyan Banister and Ludlow Ventures, with participation from GroundUp Ventures, Airbnb co-founder Nate Blecharczyk and HQ Trivia founder Rus Yusupov, among others.

Wardrobe was founded by Adarsh Alphons after he had an epiphany about just how many items of clothes in his own house went mostly unused. In fact, The WSJ suggests that most people only wear around 20% of their wardrobe on a regular basis. Alphons says that the average woman has 57 items of clothes in her closet that she doesn’t even wear once a year.

So began Wardrobe.

Wardrobe is a peer-to-peer rental marketplace for vintage, designer and luxury brand clothing. However, unlike Rent the Runway or other sharing economy fashion platforms, Wardrobe uses dry cleaners as hubs for the inventory. This not only allows the company to scale more quickly from geography to geography, but also to remain lean without taking on the risk of big warehouses and complicated logistics around shipping.

Here’s how it works:

Folks who want to rent their clothes on Wardrobe simply fill out a few answers to questions and receive a shipping label in the mail. Once their clothes are approved, they’re sent to a local dry cleaner where they wait to be rented for either 4, 10 or 20 days.

Wardrobe HQ handles everything from storage to shipping to photographing the pieces for the app.

The owner of the clothes makes between 70 and 75% of the rental cost after the cost of dry cleaning.

Interestingly, Alphons learned in beta that users want to not only browse the app for clothes, but follow specific users and closets that they particularly like. So the app is now tailored to let users follow one another and watch each other’s closets, creating an environment that may attract influencers to the platform.

Wardrobe currently has partnerships with more than 40 Manhattan dry cleaners, serving all of the island below 110th Street. Alphons says that each dry cleaner can hold between 100 and 1,000 items of clothing at a time.

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Fountain, a platform for recruiting gig and hourly workers, raises $23M

Contract, self-employed and temporary jobs are on the rise in developed markets, with some 85% of the global workforce, 2.7 billion people, estimated to be on some form of hourly wage rather than flat salary.

Today, a startup that helps companies source these kinds of candidates is announcing a round of funding to help meet that demand. Fountain, which has built a platform to find and screen candidates for field roles — not knowledge-worker desk jobs, but hourly work that likely has you on your feet — has raised $23 million, money that it will be using to continue expanding its platform, the kinds of services it provides to its customers and its geographical footprint.

Fountain already has some scale: The company currently sources and processes more than 1 million inbound candidate applications each month, filling some 150,000 jobs in the process, CEO and founder Keith Ryu said in an interview.

In addition to building engines to source candidates through a number of channels, such as traditional job boards, social media channels, a company’s own site and more, Fountain then helps with screening, interview scheduling, background checks (using third-party providers for this part), communicating with the candidate, handling the paperwork and, finally, onboarding.

Led by DCM, this latest round also included a potentially strategic backer, the Chinese recruitment site 51job, as well as Origin Ventures, Uncork Capital and others that are not being named. This brings the total raised by Fountain, which previously was called OnboardIQ and had been incubated in Y Combinator, to $34 million.

Fountain’s business targets two main kinds of employers. First, ridesharing companies like Uber, delivery startups like Postmates and home services providers like Thumbtack all function by virtue of their pools of “gig” workers, self-employed people who choose their own working hours and dip into the platforms for assignments when they have time to fulfill them.

But the challenge of finding good people for field jobs is not venture-backed startups’ alone. The second big category that Fountain taps for business is the wider pool of retail and food industry businesses that have long relied on hourly workers but also find it hard to source qualified and reliable people.

Between those two, Ryu said that customers cover big “gig economy” businesses like Uber Eats, Caviar and Cabify; large fast food franchises, including Taco Bell, Burger King and KFC chains; and a number of other customers that use Fountain’s APIs for white-label services and prefer not to be named. (I think it’s interesting that Uber Eats is on Fountain’s customer list, but Uber is not.)

Fountain was founded in 2015, arguably at the peak of demand for recruiting gig economy workers. In the years since then, and especially in recent times, demands have moved away for these companies from aggressive expansion (bringing on, for example, lots of new drivers), and into more profitable operations. Ryu said that the knock-on effect for Fountain has not been a reduction, but a change, in terms of the services required, with some companies opting to outsource, whereas in the past they might have handled recruitment in-house.

“There has been some attention to reducing operating costs per driver, including driver acquisition,” he said. “That is where we have been getting involved, using our size [and reach] to reduce the cost to the employer.”

This also has had the effect of also seeing Fountain change up its own strategy to make more of an effort to target more traditional businesses that are based around hourly employees: no longer contractors, but still very much in the field.

“As the unrivaled leader in gig hiring and recruiting, Fountain is already reshaping the way billions of job seekers interact with employers,” says David Chao, co-founder and partner at DCM, in a statement. “Fountain has been exceptionally capital efficient and has best-in-class customer retention,” adds Kyle Lui, partner at DCM.

Fountain is not disclosing its valuation with this round. In its last round, back in 2017, it had a very modest $40 million price on it, although given its growth since then (it had sourced 5 million candidates in two years in 2017; now it sources 1 million each month) this is likely to be significantly higher.

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Labor leaders and startup founders talk how to build a sustainable gig economy

Over the past few years, gig economy companies and the treatment of their labor force has become a hot button issue for public and private sector debate.

At our recent annual Disrupt event in San Francisco, we dug into how founders, companies and the broader community can play a positive role in the gig economy, with help from Derecka Mehrens, an executive director at Working Partnerships USA and co-founder of Silicon Valley Rising — an advocacy campaign focused on fighting for tech worker rights and creating an inclusive tech economy — and Amanda de Cadenet, founder of Girlgaze, a platform that connects advertisers with a network of 200,000 female-identifying and non-binary creatives.

Derecka and Amanda dove deep into where incumbent gig companies have fallen short, what they’re doing to right the ship, whether VC and hyper-growth mentalities fit into a sustainable gig economy, as well as thoughts on Uber’s new ‘Uber Works’ platform and CA AB-5. The following has been lightly edited for length and clarity.

Where current gig companies are failing

Arman Tabatabai: What was the original promise and value proposition of the gig economy? What went wrong?

Derecka Mehrens: The gig economy exists in a larger context, which is one in which neoliberalism is failing, trickle-down economics is proven wrong, and every day working people aren’t surviving and are looking for something more.

And so you have a situation in which the system we put together to create employment, to create our communities, to build our housing, to give us jobs is dysfunctional. And within that, folks are going to come up with disruptive solutions to pieces of it with a promise in mind to solve a problem. But without a larger solution, that will end up, in our view, exacerbating existing inequalities.

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We’ll have self-flying cars before self-driving cars, Thrun says

Once you get up high enough, you don’t have to worry about a lot of the obstacles like pedestrians and traffic jams that plague autonomous cars. That’s why Sebastian Thrun, Google’s self-driving team founder turned CEO of flying vehicle startup Kitty Hawk, said onstage at TechCrunch Disrupt SF today that we should expect true autonomy to succeed in the air before the road.

“I believe we’re going to be done with self-flying vehicles before we’re done with self-driving cars,” Thrun told TechCrunch reporter Kirsten Korosec.

Why? “If you go a bit higher in the air then all the difficulties with not hitting stuff like children and bicycles and cars and so on just vanishes . . . Go above the buildings, go above the trees, like go where the helicopters are!” Thrun explained, but noted personal helicopters are so noisy they’re being banned in some places like Napa, Calif.

That proclamation has wide-reaching implications for how cities are planned and real estate is bought. We may need more vertical take-off helipads sooner than we needed autonomous car-only road lanes. More remote homes in the forest that have only a single winding road that reaches them like those in Big Sur, Calif. might suddenly become more accessible and thereby appealing to the affluent because they could just take a self-flying car to the city or office.

The concept could also have wide-reaching implications for the startup industry. Obviously Thrun’s own company, Kitty Hawk, would benefit from not being too early to market. Kitty Hawk announced its Heaviside vehicle today that’s designed to be ultra quiet. If the prophecy comes true, Uber, which is investing in vertical take-off vehicles, could also be in a better position than Lyft and other ride-hailing players focused on cars.

To make sure its vehicles don’t get banned and potentially pave the way for more aerial autonomy, Kitty Hawk recently recruited former FAA Administrator Mike Huerta as an advisor.

Eventually, Thrun says that because cars have to navigate indirect streets but in the air “we can go in a straight line, we believe we will be roughly a third of the energy cost per mile as Tesla.” And with shared UberPool-style flights, he sees the cost of energy getting down to just “$0.30 per mile.”

But in the meantime, Thrun is trying to get people, including me, to stop saying flying cars. “I personally don’t like the word ‘flying car,’ but it’s very catchy. The technical term is called eVTOL. These are typically electrically propelled vehicles, they can take off and land vertically, eVTOLs, vertical take-off landing, so that you don’t need an airport. And then they fly very much like a regular plane.” We’ll see if that mouthful catches on, and if the skies get more congested before the roads thin out.

Kitty Hawk Heaviside starry night

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How even the best marketplace startups get paralyzed

Josh Breinlinger
Contributor

Josh is a Managing Director at Jackson Square Ventures, an early stage venture capital firm with $245 million under management, where he focuses his investments in early stage marketplaces.

Over the past 15 years, I’ve seen a pernicious disease infect a number of marketplace startups. I call it Marketplace Paralysis. The root cause of the disease is quite innocent and seemingly harmless. Smart people with good intentions fall victim to it all the time. It starts when a platform has sufficient scale — such that there is a good amount of data on things like performance, quality rankings, purchase rates, and fill ratios. What a platform implements as a result of that data, and how it’s received by their user base, is what can lead to marketplace paralysis.

In this post, I will detail what Marketplace Paralysis is and what startups can do to avoid it. Before I get into the nitty-gritty, here’s a snapshot of the lessons you’ll learn by reading this post:

  1. Segment and focus on high-value users
  2. Remember the silent majority
  3. Modify company goals to include quality components
  4. Empower small, autonomous teams

The easiest way to explain Marketplace Paralysis is with a hypothetical example. So allow me to introduce you to Labor Marketplace X (LMX).

Equipped with the aforementioned data, the well-intentioned product managers at LMX will think about policies or features to try and improve a KPI, like fill ratio or job success rate. They might craft a policy that would separate users into two tiers.

Tier 1 gets a shiny gold star next to their name, along with extra pay, bonuses, and preferred job access. Tier 2 gets standard pay and standard job access. They’ve done their homework and feel this will benefit the marketplace.

So, they build the feature. They launch it and make an announcement to their users. And then… a revolt!

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‘The Operators’: Experts from Airbnb and Carta on building and managing your company’s customer support

Tim Hsia & Neil Devani
Contributor

Tim Hsia is the CEO of Media Mobilize and a Venture Partner at Digital Garage. Neil Devani is an angel investor and venture capitalist focused on companies solving hard problems.

Welcome to this transcribed edition of The Operators. TechCrunch is beginning to publish podcasts from industry experts, with transcriptions available for Extra Crunch members so you can read the conversation wherever you are.

The Operators features insiders from companies like Airbnb, Brex, Docsend, Facebook, Google, Lyft, Carta, Slack, Uber, and WeWork sharing their stories and tips on how to break into fields like marketing and product management. They also share best practices for entrepreneurs on how to hire and manage experts from domains outside their own.

This week’s edition features Airbnb’s Global Product Director of Customer and Community Support Platform Products, Andy Yasutake, and Carta’s Head of Enterprise Relationship Management, Jared Thomas.

Airbnb, one of the most valuable private tech companies in the world, has millions of hosts who trust strangers (guests) to come into their homes and hundreds of millions of guests who trust strangers (hosts) to provide a roof over their head. Carta, a $1 Billion+ company formerly known as eShares, is the leading provider of cap table management and valuation software, with thousands of customers and almost a million individual shareholders as users. Customers and users entrust Carta to manage their investments, a very serious responsibility requiring trust and security.

In this episode, Andy and Jared share with Neil how companies like Airbnb, Carta, and LinkedIn think about customer service, how to get into and succeed in the field and tech generally, and how founders should think about hiring and managing the customer support. With their experiences at two of tech’s trusted companies, Airbnb and Carta, this episode is packed with broad perspectives and deep insights.

image1 2

Neil Devani and Tim Hsia created The Operators after seeing and hearing too many heady, philosophical podcasts about the future of tech, and not enough attention on the practical day-to-day work that makes it all happen.

Tim is the CEO & Founder of Media Mobilize, a media company and ad network, and a Venture Partner at Digital Garage. Tim is an early-stage investor in Workflow (acquired by Apple), Lime, FabFitFun, Oh My Green, Morning Brew, Girls Night In, The Hustle, Bright Cellars, and others.

Neil is an early-stage investor based in San Francisco with a focus on companies building stuff people need, solutions to very hard problems. Companies he’s invested in include Andela, Clearbit, Kudi, Recursion Pharmaceuticals, Solugen, and Vicarious Surgical.

If you’re interested in starting or accelerating your marketing career, or how to hire and manage this function, you can’t miss this episode!

The show:

The Operators brings experts with experience at companies like Airbnb, Brex, Docsend, Facebook, Google, Lyft, Carta, Slack, Uber, WeWork, etc. to share insider tips on how to break into fields like marketing and product management. They also share best practices for entrepreneurs on how to hire and manage experts from domains outside their own.

In this episode:

In Episode 5, we’re talking about customer service. Neil interviews Andy Yasutake, Airbnb’s Global Product Director of Customer and Community Support Platform Products, and Jared Thomas, Carta’s Head of Enterprise Relationship Management.


Neil Devani: Hello and welcome to the Operators, where we talk to entrepreneurs and executives from leading technology companies like Google, Facebook, Airbnb, and Carta about how to break into a new field, how to build a successful career, and how to hire and manage talent beyond your own expertise. We skip over the lofty prognostications from venture capitalists and storytime with founders to dig into the nuts and bolts of how it all works here from the people doing the real day to day work, the people who make it all happen, the people who know what it really takes. The Operators.

Today we are talking to two experts in customer service, one with hundreds of millions of individual paying customers and the other being the industry standard for managing equity investments. I’m your host, Neil Devani, and we’re coming to you today from Digital Garage in downtown San Francisco.

Joining me is Jared Thomas, head of Enterprise Relationship Management at Carta, a $1 billion-plus company after a recent round of financing led by Andreessen Horowitz. Carta, formerly known as eShares, is the leading provider of cap table management and valuation software with thousands of customers and almost a million individual shareholders as users. Customers and users trust Carta to manage their investments, a very serious responsibility requiring trust and security.

Also joining us is Andy Yasutake, the Global Product Director of Customer and Community Support Platform Products at Airbnb, one of the most valuable private tech startups today. Airbnb has millions of hosts who are trusting strangers to come into their homes and hundreds of millions of guests who are trusting someone to provide a roof over their head. The number of cases and types of cases that Andy and his team have to think about and manage boggle the mind. Jared and Andy, thank you for joining us.

Andy Yasutake: Thank you for having us.

Jared Thomas: Thank you so much.

Devani: To start, Andy, can you share your background and how you got to where you are today?

Yasutake: Sure. I’m originally from southern California. I was born and raised in LA. I went to USC for undergrad, University of Southern California, and I actually studied psychology and information systems.

Late-90s, the dot com was going on, I’d always been kind of interested in tech, went into management consulting at interstate consulting that became Accenture, and was in consulting for over 10 years and always worked on large systems of implementation of technology projects around customers. So customer service, sales transformation, anything around CRM, as kind of a foundation, but it was always very technical, but really loved the psychology part of it, the people side.

And so I was always on multiple consulting projects and one of the consulting projects with actually here in the Bay Area. I eventually moved up here 10 years ago and joined eBay, and at eBay I was the director of product for the customer services organization as well. And was there for five years.

I left for Linkedin, so another rocket ship that was growing and was the senior director of technology solutions and operations where I had all the kind of business enabling functions as well as the technology, and now have been at Airbnb for about four months. So I’m back to kind of my, my biggest passion around products and in the customer support and community experience and customer service world.

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Uber eats Uber Eats, embedding it in the main app

Uber’s best hope to beat all its ride sharing and food delivery competitors is that it does both. Through cross-promotion, it can combine activities people might only do a few times per week or month into a product they open daily.

Uber CEO Dara Khosrowshahi said cryptically on the company’s first earnings call last month that “Suffice it to say we are starting to experiment in ways in which we can upsell our ride customers to Eats deals in a way that — you know, to be plain spoken — isn’t annoying . . . I will tell you that we are very, very early in the stages of exploring the many, many ways in which our Ride business can help continue to build our Eats business and vice versa by the way . . . I don’t want to give away too much.”

But TechCrunch has discovered that specifically, Uber is starting to make a web view of Uber Eats accessible from its main app. A tipster in Boston first clued us in to the feature and now Uber confirms that it’s merging a fully functional web version of Uber Eats into its ride-hailing product. Uber quietly began rolling out a pilot of the merged app in late April. Uber Eats app will remain available as a standalone app.

The move could give Uber a customer acquisition and retention edge on single-product competitors like Lyft or DoorDash, while helping it keep up with multi-product peers like Careem and Bolt (which recently added food delivery), and its biggest global foe Didi from China which just launched food delivery in Uber stronghold Mexico. Combining functionality means Uber’s ride hailing customers could see a promotion for Eats and instantly try it without downloading a new app as their tummy rumbles. It could also get the 50% of Eats customers who don’t ride in Ubers to try it for transportation.

“We’re rolling out a new way to order Eats directly in the Uber app on Android (we’ve already been experimenting on iOS)” an Uber spokesperson tells me. “This cross-promotion gives riders who are new to Eats a seamless way to order a meal via a webview instead of opening up the App Store for download.”

The merged app is now available to all iOS users in cities where Uber doesn’t offer bikes and scooters that already clutter the interface of its car service app such as SF, LA, and NYC. The Android version is out to 17% of riders in Uber Eats’ 500 other markets with the goal of the cross-promotional tool being available to all riders.

“We believe our platform model allows us to acquire, engage and retain customers with the cost, as well as efficiency and effectiveness advantage over our rivals, typically monoline competitors” Khosrowshahi said on the earnings call. “What we found is that with Rides and Eats . . . we are seeing early signal where essentially you can have very little if any cannibalization of a Ride and throw a significant amount of potential demand onto the Eats side.”

The CEO also mentioned Uber’s loyalty and subscription programs are vital to cross-promotion. Its Uber Rewards that rolled out in January earns users points for both rides and food orders, and higher reward tiers score users free Eats deliveries that could get them hooked on the convenience. And last month, TechCrunch broke the news of Uber prototyping a $9.99 Uber Eats Pass subscription that offers unlimited free Eats deliveries.

“Really what we are looking to do is significantly increase the percentage of our MAPCs [monthly active platform consumers] that use both products [ride-hailing and Eats] and when we see customers using more than one product, their engagement with the platform more than doubles” Khosrowshahi concluded on the call. “So not only does engagement with Uber increase, but the engagement with our individual products increases as well, so it’s kind of a win, win, win.”

Uber’s market is all about lifetime value. If it can lock users in now, it could earn a fortune off them in the decades to come. That’s why it’s spending so much on marketing and expansion now even if it means racking up earnings losses. But its best (and cheapest) marketing channel is likely cross-promotion through the apps it’s already gotten people to install.

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The savage genius of SoftBank funding competitors

Venture capitalists aren’t supposed to make their portfolio companies battle to the death. There’s a long-standing but unofficial rule that investors shouldn’t fund multiple competitors in the same space. Conflicts of interest could arise, information about one startup’s strategy could be improperly shared with the other, and the companies could become suspicious of advice provided by their investors. That leads to problems down the line for VCs, as founders may avoid them if they fear the firm might fund their rival down the line.

SoftBank shatters that norm with its juggernaut $100 billion Vision Fund plus its Innovation Fund. The investor hasn’t been shy about funding multiple sides of the same fight.

The problem is that SoftBank’s power distorts the market dynamics. Startups might take exploitative deals from the firm under the threat that they’ll be outspent whoever is willing to take the term sheet. That can hurt employees, especially ones joining later, who might have a reduced chance for a meaningful exit. SoftBank could advocate for mergers, acquisitions, or product differentiation that boost its odds of reaping a fortune at the expense of the startups’ potential.

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