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Nigerian logistics startup Kobo360 raises $6M, expands in Africa

Jake Bright
Contributor

Jake Bright is a writer and author in New York City. He is co-author of The Next Africa.

Nigerian trucking logistics startup Kobo360 has raised $6 million to upgrade its platform and expand operations to Ghana, Togo and Cote D’Ivoire.

The company — with an Uber -like app that connects truckers and companies with freight needs — gained the equity financing in an IFC-led investment. The funding saw participation from others, including TLcom Capital and Y Combinator.

With the investment, Kobo360 aims to become more than a trucking transit app.

“We started off as an app, but our goal is to build a global logistics operating system. We’re no longer an app, we’re a platform,” founder Obi Ozor told TechCrunch.

In addition to connecting truckers, producers and distributors, the company is building that platform to offer supply chain management tools for enterprise customers.

“Large enterprises are asking us for very specific features related to movement, tracking and sales of their goods. We either integrate other services, like SAP, into Kobo or we build those solutions into our platform directly,” said Ozor.

Kobo360 will start by developing its API and opening it up to large enterprise customers.

“We want clients to be able to use our Kobo dashboard for everything; moving goods, tracking, sales and accounting…and tackling their challenges,” said Ozor.

Kobo360 will also build more physical presence throughout Nigeria to service its business. “We’ll open 100 hubs before the end of 2019…to be able to help operations collect proof of delivery, to monitor trucks on the roads and have closer access to truck owners for vehicle inspection and training,” said Ozor.

Kobo360 will add more warehousing capabilities, “to support our reverse logistics business” — one of the ways the company brings prices down by matching trucks with return freight after they drop their loads, rather than returning empty, according to Ozor.

Kobo360 will also use its $6 million investment to expand programs and services for its drivers, something Ozor sees as a strategic priority.

“The day you neglect your drivers you are not going to have a company, only issues. If Uber were more driver-focused it would be a trillion-dollar company today,” he said.

The startup offers drivers training and group programs on insurance, discounted petrol and vehicle financing (KoboWin). Drivers on the Kobo360 app earn on average of approximately $5,000 per month, according to Ozor.

Under KoboCare, Kobo360 has also created an HMO for drivers and an incentive-based program to pay for education. “We give school fee support, a 5,000 Naira bonus per trip for drivers toward educational expenses for their kids,” said Ozor.

Kobo360 will complete limited expansion into new markets Ghana, Togo and Cote D’Ivoire in 2019. “The expansion will be with existing customers, one in the port operations business, one in FMCG and another in agriculture,” said Ozor.

Ozor thinks the startup’s asset-free, digital platform and business model can outpace traditional long-haul 3PL providers in Nigeria by handling more volume at cheaper prices.

“Owning trucks is just too difficult to manage. The best scalable model is to aggregate trucks,” he told TechCrunch in a previous interview.

With the latest investment, IFC’s regional head for Africa Wale Ayeni and TLcom senior partner Omobola Johnson will join Kobo360’s board. “There’s a lot of inefficiencies in long-haul freight in Africa…and they’re building a platform that can help a lot of these issues,” said Ayeni of Kobo360’s appeal as an investment.

The company has served 900 businesses, aggregated a fleet of 8,000 drivers and moved 155 million kilograms, per company stats. Top clients include Honeywell, Olam, Unilever, Dangote and DHL.

MarketLine estimated the value of Nigeria’s transportation sector in 2016 at $6 billion, with 99.4 percent comprising road freight.

Logistics has become an active space in Africa’s tech sector, with startup entrepreneurs connecting digital to delivery models. In Nigeria, Jumia founder Tunde Kehinde departed and founded Africa Courier Express. Startup Max.ng is wrapping an app around motorcycles as an e-delivery platform. Nairobi-based Lori Systems has moved into digital coordination of trucking in East Africa. And U.S.-based Zipline — which launched drone delivery of commercial medical supplies in partnership with the government of Rwanda and support of UPS — is in “process of expanding to several other countries,” according to a spokesperson.

Kobo360 has plans for broader Africa expansion but would not name additional countries yet.

Ozor said the company is profitable, though the startup does not release financial results. Wale Ayeni also wouldn’t divulge revenue figures, but confirmed IFC’s did full “legal and financial due diligence on Kobo’s stats,” as part of the investment.

Ozor named Lori Systems as Kobo360’s closest African startup competitor.

On the biggest challenge to revenue generation, it’s all about service delivery and execution, according to Ozor.

“We already have volume and demand in the market. The biggest threat to revenues is if Kobo360’s platform doesn’t succeed in solving our client’s problems and bringing reliability to their needs,” he said.

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Google tweaks Android licensing terms in Europe to allow Google app unbundling — for a fee

Google has announced changes to the licensing model for its Android mobile operating system in Europe,  including introducing a fee for licensing some of its own brand apps, saying it’s doing so to comply with a major European antitrust ruling this summer.

In July the region’s antitrust regulators hit Google with a recordbreaking $5BN fine for violations pertaining to Android, finding the company had abused the dominance of the platform by requiring manufacturers pre-install other Google apps in order to license its popular Play app store. 

Regulators also found Google had made payments to manufacturers and mobile network operators in exchange for exclusively pre-installing Google Search on their devices, and used Play store licensing to prevent manufacturers from selling devices based on Android forks.

Google disputes the Commission’s findings, and last week filed its appeal — a legal process that could take years. But in the meanwhile it’s making changes to how it licenses Android in Europe to avoid the risk of additional penalties heaped on top of the antitrust fine.

Hiroshi Lockheimer, Google’s senior vice president of platforms & ecosystems, revealed the new licensing options in a blog post published today.

Under updated “compatibility agreements”, he writes that mobile device makers will be able to build and sell Android devices intended for the European Economic Area (EEA) both with and without Google mobile apps preloaded — something Google’s same ‘compatibility’ contracts restricted them from doing before, when it was strictly either/or (either you made Android forks, or you made Android devices with Google apps — not both).

“Going forward, Android partners wishing to distribute Google apps may also build non-compatible, or forked, smartphones and tablets for the European Economic Area (EEA),” confirms Lockheimer.

However the company is also changing how it licenses the full Android bundle — which previously required OEMs to load devices with the Google mobile application suite, Google Search and the Chrome browser in order to be able to offer the popular Play Store — by introducing fees for OEMs wanting to pre-load a subset of those same apps under “a new paid licensing agreement for smartphones and tablets shipped into the EEA”.

Though Google stresses there will be no charge for using the Android platform itself. (So a pure fork without any Google services preloaded still wouldn’t require a fee.)

Google also appears to be splitting out Google Search and Chrome from the rest of the Google apps in its mobile suite (which traditionally means stuff like YouTube, the Play Store, Gmail, Google Maps, although Lockheimer’s blog post does not make it clear which exact apps he’s talking about) — letting OEMs selectively unbundle some Google apps, albeit potentially for a fee, depending on the apps in question.

“[D]evice manufacturers will be able to license the Google mobile application suite separately from the Google Search App or the Chrome browser,” is what Lockheimer unilluminatingly writes.

Perhaps Google wants future unbundled Android forks to still be able to have Google Search or Chrome, even if they don’t have the Play store, but it’s really not at all clear which configurations of Google apps will be permitted under the new licensing terms, and which won’t.

“Since the pre-installation of Google Search and Chrome together with our other apps helped us fund the development and free distribution of Android, we will introduce a new paid licensing agreement for smartphones and tablets shipped into the EEA. Android will remain free and open source,” Lockheimer adds, without specifying what the fees will be either. 

“We’ll also offer new commercial agreements to partners for the non-exclusive pre-installation and placement of Google Search and Chrome. As before, competing apps may be pre-installed alongside ours,” he continues to complete his trio of poorly explained licensing changes.

We’ve asked Google to clarify the various permitted and not permitted app configurations, as well as which apps will require a fee (and which won’t), and how much the fees will be, and will update this post with any response.

The devil in all those details should become clear soon though, as Google says the new licensing options will come into effect on October 29 for all new (Android based) smartphones and tablets launched in the EEA.

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Google’s Wear OS gets a new look

Wear OS, Google’s smartwatch operating system that was once called Android Wear, is getting a new look today. Google says the overall idea here is to give you quicker access to information and more proactive help. In line with the Google Fit redesign, Wear OS now also provides you with the same kind of health coaching as the Android app.

In practice, this means you can now swipe through multiple notifications at once, for example. Previously, you had to go from one notifications card to the next, which sound minor but was indeed a bit of a hassle. Like before, you bring up the new notifications feed by swiping up. If you want to reply or take any other action, you tap the notification to bring up those options.

Wear OS is also getting a bit of a Google Now replacement. Simply swipe right and the Google Assistant will bring up the weather, your flight status, hotel notifications or other imminent events. Like in most other Assistant-driven interfaces, Google will also use this area to help you discover other Assistant features like setting timers (though I think everybody knows how to use the Assistant to set a time given that I’m sure that’s 90% of Assistant usage right there).

As for Google Fit, it doesn’t come as a surprise that Wear OS is adapting the same circle design with Hear Points and Move Minutes as the Android app. On a round Wear OS watch, that design actually looks quite well.

While this obviously isn’t a major break from previous versions, we’re definitely talking about quality-of-life improvements here that do make using Wear OS just that little bit easier.

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‘Unhackable’ BitFi crypto wallet has been hacked

The BitFi crypto wallet was supposed to be unhackable and none other than famous weirdo John McAfee claimed that the device – essentially an Android-based mini tablet – would withstand any attack. Spoiler alert: it couldn’t.

First, a bit of background. The $120 device launched at the beginning of this month to much fanfare. It consisted of a device that McAfee claimed contained no software or storage and was instead a standalone wallet similar to the Trezor. The website featured a bold claim by McAfee himself, one that would give a normal security researcher pause:

Further, the company offered a bug bounty that seems to be slowly being eroded by outside forces. They asked hackers to pull coins off of a specially prepared $10 wallet, a move that is uncommon in the world of bug bounties. They wrote:

We deposit coins into a Bitfi wallet
If you wish to participate in the bounty program, you will purchase a Bitfi wallet that is preloaded with coins for just an additional $10 (the reason for the charge is because we need to ensure serious inquiries only)
If you successfully extract the coins and empty the wallet, this would be considered a successful hack
You can then keep the coins and Bitfi will make a payment to you of $250,000
Please note that we grant anyone who participates in this bounty permission to use all possible attack vectors, including our servers, nodes, and our infrastructure

Hackers began attacking the device immediately, eventually hacking it to find the passphrase used to move crypto in and out of the the wallet. In a detailed set of tweets, security researchers Andrew Tierney and Alan Woodward began finding holes by attacking the operating system itself. However, this did not match the bounty to the letter, claimed BitFi, even though they did not actually ship any bounty-ready devices.

Something that I feel should be getting more attention is the fact that there is zero evidence that a #bitfi bounty device was ever shipped to a researcher. They literally created an impossible task by refusing to send the device required to satisfy the terms of the engagement.

— Gallagher (@DanielGallagher) August 8, 2018

Then, to add insult to injury, the company earned a Pwnies award at security conference Defcon. The award was given for worst vendor response. As hackers began dismantling the device, BitFi went on the defensive, consistently claiming that their device was secure. And the hackers had a field day. One hacker, 15-year-old Saleem Rashid, was able to play Doom on the device.

Well, that’s a transaction made with a MitMed Bitfi, with the phrase and seed being sent to a remote machine.

That sounds a lot like Bounty 2 to me. pic.twitter.com/qBOVQ1z6P2

— Ask Cybergibbons! (@cybergibbons) August 13, 2018

The hacks kept coming. McAfee, for his part, kept refusing to accept the hacks as genuine.

The press claiming the BitFi wallet has been hacked. Utter nonsense. The wallet is hacked when someone gets the coins. No-one got any coins. Gaining root access in an attempt to get the coins is not a hack. It’s a failed attempt. All these alleged “hacks” did not get the coins.

— John McAfee (@officialmcafee) August 3, 2018

Unfortunately, the latest hack may have just fulfilled all of BitFi’s requirements. Rashid and Tierney have been able to pull cash out of the wallet by hacking the passphrase, a primary requirement for the bounty. “We have sent the seed and phrase from the device to another server, it just gets sent using netcat, nothing fancy.” Tierney said. “We believe all conditions have been met.”

The end state of this crypto mess? BitFi did what most hacked crypto companies do: double down on the threats. In a recently deleted Tweet they made it clear that they were not to be messed with:

I haven’t really been following this Bitfi nonsense, but I do so love when companies threaten security researchers. pic.twitter.com/McyBGqM3bt

— Matthew Green (@matthew_d_green) August 6, 2018

The researchers, however, may still have the last laugh.

Claiming your front door has an unpickable lock does not make your house secure. No more does offering a reward only for defeating that front door lock, and repeatedly saying no one has claimed the reward, prove your house is secure, especially when you’ve left the windows open.

— Alan Woodward (@ProfWoodward) August 14, 2018

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HTC is gone

Gather around, campers, and hear a tale as old as time.

Remember the HTC Dream? The Evo 4G? The Google Nexus One? What about the Touch Diamond? All amazing devices. The HTC of 2018 is not the HTC that made these industry-leading devices. That company is gone.

It seems HTC is getting ready to lay off nearly a quarter of its workforce by cutting 1,500 jobs in its manufacturing unit in Taiwan. After the cuts, HTC’s employee count will be less than 5,000 people worldwide. Five years ago, in 2013, HTC employed 19,000 people.

HTC started as a white label device maker giving carriers an option to sell devices branded with their name. The company also had a line of HTC-branded connected PDAs that competed in the nascent smartphone market. BlackBerry, or Research in Motion as it was called until 2013, ruled this phone segment, but starting around 2007 HTC began making inroads thanks to innovated touch devices that ran Windows Mobile 6.0.

In 2008 HTC introduced the Touch line with the Touch Diamond, Touch Pro, Touch 3G and Touch HD. These were stunning devices for the time. They were fast, loaded with big, user swappable batteries and microSD card slots. The Touch Pro even had a front-facing camera for video calls.

HTC overlayed a custom skin onto Windows Mobile making it a bit more palatable for the general user. At that time, Windows Mobile was competing with BlackBerry’s operating system and Nokia’s Symbian. None was fantastic, but Windows Mobile was by far the most daunting for new users. HTC did the best thing it could do and developed a smart skin that gave the phone a lot of features that would still be considered modern.

In 2009 HTC released the first Android device with Google. Called the HTC Dream or G1, the device was far from perfect. But the same could be said about the iPhone. This first Android phone set the stage for future wins from HTC, too. The company quickly followed up with the Hero, Droid Incredible, Evo 4G and, in 2010, the amazing Google Nexus One.

After the G1, HTC started skinning Android in the same fashion as it did Windows Mobile. It cannot be overstated how important this was for the adoption of Android. HTC’s user interface made Android usable and attractive. HTC helped make Android a serious competitor to Apple’s iOS.

In 2010 and 2011, Google turned to Samsung to make the second and third flagship Nexus phones. It was around this time Samsung started cranking out Android phones, and HTC couldn’t keep up. That’s not to say HTC didn’t make a go for it. The company kept releasing top-tier phones: the One X in 2012, the One Max in 2013 and the One (M8) in 2014. But it didn’t matter. Samsung had taken up the Android standard and was charging forward, leaving HTC, Sony and LG to pick from the scraps.

At the end of 2010, HTC was the leading smartphone vendor in the United States. In 2014 it trailed Apple, Samsung and LG with around a 6 percent market share in the U.S. In 2017 HTC captured 2.3 percent of smartphone subscribers and now in 2018, some reports peg HTC with less than a half percent of the smartphone market.

Google purchased a large chunk of HTC’s smartphone design talent in 2017 for $1.1 billion. The deal transferred more than 2,000 employees under Google’s tutelage. They will likely be charged with working on Google’s line of Pixel devices. It’s a smart move. This HTC team was responsible for releasing amazing devices that no one bought. But that’s not entirely their fault. Outside forces are to blame. HTC never stopped making top-tier devices.

The HTC of today is primarily focused on the Vive product line. And that’s a smart play. The HTC Vive is one of the best virtual reality platforms available. But HTC has been here before. Hopefully, it learned something from its mistakes in smartphones.

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Apple slapped with $6.6M fine in Australia over bricked devices

Apple has been fined AUS$9M (~$6.6M) by a court in Australia following a legal challenge by a consumer rights group related to the company’s response after iOS updates bricked devices that had been repaired by third parties.

The Australian Competitor and Consumer Commission (ACCC) invested a series of complaints relating to an error (‘error 53’) which disabled some iPhones and iPads after owners downloaded an update to Apple’s iOS operating system.

The ACCC says Apple admitted that, between February 2015 and February 2016 — via the Apple US’ website, Apple Australia’s staff in-store and customer service phone calls — it had informed at least 275 Australian customers affected by error 53 that they were no longer eligible for a remedy if their device had been repaired by a third party.

Image credit: 70023venus2009 via Flickr under license CC BY-ND 2.0

The court judged Apple’s action to have breached the Australian consumer law.

“If a product is faulty, customers are legally entitled to a repair or a replacement under the Australian Consumer Law, and sometimes even a refund. Apple’s representations led customers to believe they’d be denied a remedy for their faulty device because they used a third party repairer,” said ACCC commissioner Sarah Court in a statement.

“The Court declared the mere fact that an iPhone or iPad had been repaired by someone other than Apple did not, and could not, result in the consumer guarantees ceasing to apply, or the consumer’s right to a remedy being extinguished.”

The ACCC notes that after it notified Apple about its investigation, the company implemented an outreach program to compensate individual consumers whose devices were made inoperable by error 53. It says this outreach program was extended to approximately 5,000 consumers.

It also says Apple Australia offered a court enforceable undertaking to improve staff training, audit information about warranties and Australian Consumer Law on its website, and improve its systems and procedures to ensure future compliance with the law.

The ACCC further notes that a concern addressed by the undertaking is that Apple was allegedly providing refurbished goods as replacements, after supplying a good which suffered a major failure — saying Apple has committed to provide new replacements in those circumstances if the consumer requests one.

“If people buy an iPhone or iPad from Apple and it suffers a major failure, they are entitled to a refund. If customers would prefer a replacement, they are entitled to a new device as opposed to refurbished, if one is available,” said Court.

The court also held the Apple parent company, Apple US, responsible for the conduct of its Australian subsidiary. “Global companies must ensure their returns policies are compliant with the Australian Consumer Law, or they will face ACCC action,” added Court.

We’ve reached out to Apple for comment on the court decision and will update this post with any response.

A company spokeswoman told Reuters it had had “very productive conversations with the ACCC about this” but declined to comment further on the court finding.

More recently, Apple found itself in hot water with consumer groups around the world over its use of a power management feature that throttled performance on older iPhones to avoid unexpected battery shutdowns.

The company apologized in December for not being more transparent about the feature, and later said it would add a control allowing consumers to turn it off if they did not want their device’s performance to be impacted.

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Some low-cost Android phones shipped with malware built in

Avast has found that many low-cost, non-Google-certifed Android phones shipped with a strain of malware built in that could send users to download apps they didn’t intend to access. The malware, called called Cosiloon, overlays advertisements over the operating system in order to promote apps or even trick users into downloading apps. Devices effected shipped from ZTE, Archos and myPhone.

The app consists of a dropper and a payload. “The dropper is a small application with no obfuscation, located on the /system partition of affected devices. The app is completely passive, only visible to the user in the list of system applications under ‘settings.’ We have seen the dropper with two different names, ‘CrashService’ and ‘ImeMess,’” wrote Avast. The dropper then connects with a website to grab the payloads that the hackers wish to install on the phone. “The XML manifest contains information about what to download, which services to start and contains a whitelist programmed to potentially exclude specific countries and devices from infection. However, we’ve never seen the country whitelist used, and just a few devices were whitelisted in early versions. Currently, no countries or devices are whitelisted. The entire Cosiloon URL is hardcoded in the APK.”

The dropper is part of the system’s firmware and is not easily removed.

To summarize:

The dropper can install application packages defined by the manifest downloaded via an unencrypted HTTP connection without the user’s consent or knowledge.
The dropper is preinstalled somewhere in the supply chain, by the manufacturer, OEM or carrier.
The user cannot remove the dropper, because it is a system application, part of the device’s firmware.

Avast can detect and remove the payloads and they recommend following these instructions to disable the dropper. If the dropper spots antivirus software on your phone it will actually stop notifications but it will still recommend downloads as you browse in your default browser, a gateway to grabbing more (and worse) malware. Engadget notes that this vector is similar to the Lenovo “Superfish” exploit that shipped thousands of computers with malware built in.

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Android N’s first beta-quality release gets seamless updates and VR mode

Screen Shot 2016-05-09 at 1.52.04 PM As expected, Google made Android N, the next version of its mobile operating system, a cornerstone of its I/O keynote today. With Android N, Google moved to a very different release cycle compared to previous releases. While I/O is usually the place for Google to share a first look at new versions of Android, it actually released a first preview of N a few months ago. This was also the… Read More

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Google Maps Now Lets You Scale Yosemite’s El Capitan Mountain

Screen Shot 2015-06-23 at 9.15.36 AM El Capitan is already something I associate almost by default with Mac OS X, but it was a real mountain before that – millions of years before Apple previewed OS X 10.11, in fact, though it only got its name in 1851. Anyways, it’s the real mountain, not the Apple operating system, that Google now lets you virtually climb in Google Maps with its first ever vertical Street View… Read More

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What To Expect From Apple’s WWDC 2015

wwdc2015  This year’s kick-off event at WWDC will likely have a developer focus, given the nature of the event, but there will plenty for everyone to pay attention to, especially if you’re a fan of iOS, OS X or the latest new Apple device: The Apple Watch.
Here’s a roundup of what’s likely to go down at WWDC this year, along with a few far-out wishes and some cold water for… Read More

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