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Didi filed to go public in the United States last night, providing a look into the Chinese ride-hailing company’s business. This morning, we’re extending our earlier reporting on the company to dive into its numerical performance, economic health and possible valuation.
Recall that Didi has raised tens of billions worth of private capital from venture capitalists, private equity firms, corporations and other sources. The size of the bet riding on Didi is simply massive.
Didi is approaching the American public markets at a fortuitous moment. While the late-2020 IPO fervor, which sent offerings from DoorDash and others skyrocketing after their debuts, has cooled, valuations for public companies remain high compared to historical norms. And Uber and Lyft, two American ride-hailing companies, have been posting numbers that point to at least a modest recovery in the ride-hailing industry as COVID-19 abates in many parts of the world.
As further grounding, recall that Didi has raised tens of billions worth of private capital from venture capitalists, private equity firms, corporations and other sources. The size of the bet riding on Didi is simply massive. As we explore the company’s finances, then, we’re more than vetting a single company’s performance; we’re examining what sort of returns an ocean of capital may be able to derive from its exit.
In that vein, we’ll consider GMV results, revenue growth, historical profitability, present-day profitability and what Didi may be worth on the American markets, given current comps. Sound good? Into the breach!
Starting at the highest level, how quickly has gross transaction volume (GTV) scaled at the company?
Didi is historically a business that operates in China but has operations today in more than a dozen countries. The impact and recovery of China’s bout with COVID-19 is therefore not the whole picture of the company’s GTV results.
COVID-19 began to affect the company starting in the first quarter of 2020. From the Didi F-1 filing:
Core Platform GTV fell by 32.8% in the first quarter of 2020 as compared to the first quarter of 2019, and then by 16.0% in the second quarter of 2020 as compared to the second quarter of 2019.
The dips were short-lived, however, with Didi quickly returning to growth in the second half of the year:
Our businesses resumed growth in the second half of 2020, which moderated the impact on a year-on-year basis. Our Core Platform GTV for the full year 2020 decreased by 4.8% as compared to the full year 2019. Both our China Mobility and International segments were impacted, but whereas the GTV for our China Mobility segment decreased by 6.6% from 2019 to 2020, the GTV for our International segment increased by 11.4% from 2019 to 2020.
Holding to just the Chinese market, we can see how rapidly Didi managed to pick itself up over the last year. Chinese GTV at Didi grew from 25.7 billion RMB to 54.6 billion RMB from the first quarter of 2020 to the first quarter of 2021; naturally, we’re comparing a more pandemic-impacted quarter at the company to a less-affected period, but the comparison is still useful for showing how the company recovered from early-2020 lows.
The number of transactions that Didi recorded in China during the first quarter of this year was also up more than 2x year over year.
On a whole-company basis, Didi’s “core platform GTV,” or the “sum of GTV for our China Mobility and International segments,” posted numbers that are less impressive in growth terms:
Image Credits: Didi F-1 filing
You can see how quickly and painfully COVID-19 blunted Didi’s global operations. But seeing the company settle back to late-2019 GTV numbers in 2021 is not super bullish.
Takeaway: While Didi managed an impressive GTV recovery in China, its aggregate numbers are flatter, and recent quarterly trends are not incredibly attractive.
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Women engineers often face workplace and career challenges that their male colleagues don’t because they remain a minority in the profession: Depending on how you count, women make up just 13% to 25% of engineering jobs. That inequity leads to a power imbalance, which can lead to toxic working environments.
One of the more infamous and egregious examples is Susan Fowler’s experience at Uber. In a blog post in February 2017, she described her boss coming on to her in a company chat channel on her first day on the job. She later wrote a book, “Whistleblower,” that described her time at the company in detail.
Fowler’s ordeal cast a spotlight on the harassment women engineers have to deal with in the workplace. In a profession that tends to be male-dominated, behavior ranges from blatant examples, like what happened to Fowler, to ongoing daily microaggressions.
Four female engineers spoke with me about their challenges:
It’s worth noting that Fowler was also an SRE who worked on the same team as Medina (who was later part of a $10 million discrimination lawsuit against Uber). It shows just how small of a world we are talking about. While not everyone faced that level of harassment, they each described daily challenges, some of which wore them down. But they also showed a strong determination to overcome whatever obstacles came their way.
One of the primary issues these women faced throughout their careers is a feeling of isolation due to their underrepresentation. They say that can sometimes lead to self-doubt and an inkling that you don’t belong that can be difficult to overcome. Medina says that there have been times when, intentionally or not, male engineers made her feel unwelcome.
“One part that was really hard for me was those microaggressions on a daily basis, and that affects your work ethic, wanting to show up, wanting to try your best. And not only does that damage your own self-esteem, but your esteem [in terms of] growing as an engineer,” Medina explained.
Roa says that isolation can lead to impostor syndrome. That’s why it’s so important to have more women in these roles: to serve as mentors, role models and peers.
“One barrier for us related to being the only woman in the room is that [it can lead to] impostor syndrome because it is common when you are the only woman or one of few, it can be really challenging for us. So we need to gain confidence, and in these cases, it is very important to have role models and leadership that includes women,” Roa said.
Chong agrees it is essential to know that others have been in the same position — and found a way through.
“The fact that people talk authentically about their own jobs and challenges and how they’ve overcome that, that’s been really helpful for me to continue seeing myself in the tech industry,” she said. “There have been points where I’ve questioned whether I should leave, but then having that support around you to have people to talk to you personally and see as examples, I think it has really helped me.”
Butow described being interviewed for an article early in her career after she won an award for a mobile application she wrote. When the article was published, she was aghast to discover it had been headlined, “Not just another pretty face…”
“I was like, that’s the title?! I was so excited to share the article with my mom, and then I wasn’t. I spent so much time writing the code and obviously my face had nothing to do with it. … So there’s just little things like that where people call it a paper cut or something like that, but it’s just lots of little microaggressions.”
In spite of all that, a common thread among these women was a strong desire to show that they have the technical skill to get past these moments of doubt to thrive in their professions.
Butow said she has been battling these kinds of misperceptions since she was a teenager but never let it stop her. “I just tried to not let it bother me, but mostly because I also have a background in skateboarding. It’s the same thing, right? You go to a skate park and people would say, ‘Oh, can you even do a trick?’ and I was like, ‘Watch me.’ You know, I [would] just do it. … So a lot of that happens in lots of different types of places in the world and you just have to, I don’t know, I just always push through, like I’m just going to do it anyway.”
Chong says she doesn’t give in to discouraging feelings, adding that having other women to talk to helped push her through those times.
“As much as I like to persevere and I don’t like giving up, actually there have been points where I considered quitting, but having visibility into other people’s experiences, knowing that you’re not the only one who’s experienced that, and seeing that they’ve found better environments for themselves and that they eventually worked through it, and having those people tell you that they believe in you, that probably stopped me from leaving when I [might] have otherwise,” she said.
Chong’s experience is not unique, but the more diverse your teams are, the more people who come from underrepresented groups can support one another. Butow recruited her at one point, and she says that was a huge moment for her.
“I think that there is a network effect where we know other women and we try to bring them in and we expand on that. So we can kind of create the change or we feel the change we want to see, and we get to make our situation more comfortable,” Chong said.
Medina says that she is motivated to help bring Latinx and Black people into tech, with a focus on attracting girls and young women. She has worked with a group called Technolachicas, which produced a series of commercials with the Televisa Foundation. They filmed six videos, three in English and three in Spanish, with the goal of showing young girls how to pursue a STEM career.
“Each commercial talks about how we got our career started with an audience persona of a girl younger than 18, an adult influencer and a parent — people that are really crucial to the development of anyone under 18,” she said. “How is it that these people can actually empower someone to look at STEM and to pursue a career in STEM?”
Butow says it’s about lifting people up. “What we’re trying to do is sharing our story and hoping to inspire other women. It’s super important to have those role models. There’s a lot of research that shows that that’s actually the most important thing is just visibility of role models that you can relate to,” she said.
The ultimate goal? Having enough support in the workplace that they’re able to concentrate on being the best engineers they can be — without all of the obstruction.
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There may be billions of IoT devices in use today, but the tooling around building (and updating) the software for them still leaves a lot to be desired. Esper, which today announced that it has raised a $30 million Series B round, builds the tools to enable developers and engineers to deploy and manage fleets of Android-based edge devices. The round was led by Scale Venture Partners, with participation from Madrona Venture Group, Root Ventures, Ubiquity Ventures and Haystack.
The company argues that there are thousands of device manufacturers who are building these kinds of devices on Android alone, but that scaling and managing these deployments comes with a lot of challenges. The core idea here is that Esper brings to device development the DevOps experience that software developers now expect. The company argues that its tools allow companies to forgo building their own internal DevOps teams and instead use its tooling to scale their Android-based IoT fleets for use cases that range from digital signage and kiosks to custom solutions in healthcare, retail, logistics and more.
“The pandemic has transformed industries like connected fitness, digital health, hospitality, and food delivery, further accelerating the adoption of intelligent edge devices. But with each new use case, better software automation is required,” said Esper CEO and co-founder Yadhu Gopalan, who founded the company together with COO Shiv Sundar. “Esper’s mature cloud infrastructure incorporates the functionality cloud developers have come to expect, re-imagined for devices.”
Mobile device management (MDM) isn’t exactly a new thing, but the Esper team argues that these tools weren’t created for this kind of use case. “MDMs are the solution now in the market. They are made for devices being brought into an environment,” Gopalan said. “The DNA of these solutions is rooted in protecting the enterprise and to deploy applications to them in the network. Our customers are sending devices out into the wild. It’s an entirely different use case and model.”
To address these challenges, Esper offers a range of tools and services that includes a full development stack for developers, cloud-based services for device management and hardware emulators to get started with building custom devices.
“Esper helped us launch our Fusion-connected fitness offering on three different types of hardware in less than six months,” said Chris Merli, founder at Inspire Fitness. “Their full stack connected fitness Android platform helped us test our application on different hardware platforms, configure all our devices over the cloud, and manage our fleet exactly to our specifications. They gave us speed, Android expertise, and trust that our application would provide a delightful experience for our customers.”
The company also offers solutions for running Android on older x86 Windows devices to extend the life of this hardware, too.
“We spent about a year and a half on building out the infrastructure,” said Gopalan. “Definitely. That’s the hard part and that’s really creating a reliable, robust mechanism where customers can trust that the bits will flow to the devices. And you can also roll back if you need to.”
Esper is working with hardware partners to launch devices that come with built-in Esper-support from the get-go.
Esper says it saw 70x revenue growth in the last year, an 8x growth in paying customers and a 15x growth in devices running Esper. Since we don’t know the baseline, those numbers are meaningless, but the investors clearly believe that Esper is on to something. Current customers include the likes of CloudKitchens, Spire Health, Intelity, Ordermark, Inspire Fitness, RomTech and Uber.
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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.
This morning was a notable one in the life of TechCrunch the publication, as our parent company’s parent company decided to sell our parent company to a different parent company. And now we’re going to have to get new corporate IDs, again, as it appears that our new parent company’s parent company wants to rebrand our parent company. As Yahoo.
Cool.
Anyway, a bunch of other stuff happened as well:
We’re back Wednesday with something special. Chat then!
Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts!
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Uber unveils half a dozen new features, Samsung announces a new flagship laptop and Zomato files to go public. This is your Daily Crunch for April 28, 2021.
The big story: Uber adds vaccine booking
Uber announced a half dozen new features today, including the ability to make a vaccine appointment at Walgreens and then reserve a ride to get there.
Other additions include a valet service to drop off rental cars, reserved rides at airports and the ability to pick up food during a ride. In an interview, CPO Sundeep Jain suggested that these features are part of the company’s key focus for the past year, namely “helping users ‘go’ and helping users ‘get.’”
The tech giants
Here’s Samsung’s new flagship laptop series, the Galaxy Book Pro — These Windows machines continue the company’s push to blur some of the productivity lines between its Galaxy PC and mobile offerings.
Facebook hides posts calling for PM Modi’s resignation in India — Facebook temporarily hid all posts with the hashtag “ResignModi” in India, although a spokesperson said those posts have now been restored.
Netflix launches its shuffle feature, now called ‘Play Something,’ to users worldwide — This should make it easier to find something to watch when you can’t make a decision on your own.
Startups, funding and venture capital
Alchemy raises $80M at a $505M valuation to be the ‘AWS for blockchain’ — The company describes itself as the backend technology behind the blockchain industry.
MessageBird acquires SparkPost for $600M using $800M Series C extension — The acquisition enables MessageBird to get a stronger foothold in the U.S. market.
Splitwise raises $20M Series A to help everyone in the world divvy expenses — Splitwise aims to reduce the stress and awkwardness that money puts on relationships of all sorts.
Advice and analysis from Extra Crunch
Zomato juice: Indian unicorn’s proposed IPO could drive regional startup liquidity — Zomato’s debut could lead to a liquidity rush in India.
Dear Sophie: What’s the latest on DACA? — The latest edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.
Fund managers can leverage ESG-related data to generate insights — Apex Group’s Georges Archibald argues that environmental, social and governance insights can yield treasure in the form of alternative data.
(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)
Everything else
CES will return to Las Vegas in 2022 — Per a press release, roughly 1,000 companies have committed to returning.
India’s entrepreneurs and investors are mobilizing to help the nation fight COVID-19, and you can too — For a week straight, India has reported more than 300,000 daily new infections, about half of all the cases across the globe.
Porsche makes its case for an all-electric Taycan wagon — The Porsche Taycan 4 Cross Turismo offers a blend of practicality with a whole lot of power and speed for under $100,000.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.
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Opsera, a startup that’s building an orchestration platform for DevOps teams, today announced that it has raised a $15 million Series A funding round led by Felicis Ventures. New investor HMG Ventures, as well as existing investors Clear Ventures, Trinity Partners and Firebolt Ventures also participated in this round, which brings the company’s total funding to $19.3 million.
Founded in January 2020, Opsera lets developers provision their CI/CD tools through a single framework. Using this framework, they can then build and manage their pipelines for a variety of use cases, including their software delivery lifecycle, infrastructure as code and their SaaS application releases. With this, Opsera essentially aims to help teams set up and operate their various DevOps tools.
The company’s two co-founders, Chandra Ranganathan and Kumar Chivukula, originally met while working at Symantec a few years ago. Ranganathan then spent the last three years at Uber, where he ran that company’s global infrastructure. Meanwhile, Chivukula ran Symantec’s hybrid cloud services.
“As part of the transformation [at Symantec], we delivered over 50+ acquisitions over time. That had led to the use of many cloud platforms, many data centers,” Ranganathan explained. “Ultimately we had to consolidate them into a single enterprise cloud. That journey is what led us to the pain points of what led to Opsera. There were many engineering teams. They all had diverse tools and stacks that were all needed for their own use cases.”
The challenge then was to still give developers the flexibility to choose the right tools for their use cases, while also providing a mechanism for automation, visibility and governance — and that’s ultimately the problem Opsera now aims to solve.
“In the DevOps landscape, […] there is a plethora of tools, and a lot of people are writing the glue code,” Opsera co-founder Chivukula noted. “But then they’re not they don’t have visibility. At Opsera, our mission and goal is to bring order to the chaos. And the way we want to do this is by giving choice and flexibility to the users and provide no-code automation using a unified framework.”
Wesley Chan, a managing director for Felicis Ventures who will join the Opsera board, also noted that he believes that one of the next big areas for growth in DevOps is how orchestration and release management is handled.
“We spoke to a lot of startups who are all using black-box tools because they’ve built their engineering organization and their DevOps from scratch,” Chan said. “That’s fine, if you’re starting from scratch and you just hired a bunch of people outside of Google and they’re all very sophisticated. But then when you talk to some of the larger companies. […] You just have all these different teams and tools — and it gets unwieldy and complex.”
Unlike some other tools, Chan argues, Opsera allows its users the flexibility to interface with this wide variety of existing internal systems and tools for managing the software lifecycle and releases.
“This is why we got so interested in investing, because we just heard from all the folks that this is the right tool. There’s no way we’re throwing out a bunch of our internal stuff. This would just wreak havoc on our engineering team,” Chan explained. He believes that building with this wide existing ecosystem in mind — and integrating with it without forcing users onto a completely new platform — and its ability to reduce friction for these teams, is what will ultimately make Opsera successful.
Opsera plans to use the new funding to grow its engineering team and accelerate its go-to-market efforts.
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Tyltgo wants to make it easier for restaurants and small businesses to compete with same-day delivery services offered by the likes of Amazon and HelloFresh. The Canadian company, which recently raised CAD $2.3 million (USD $1.8 million) in a seed round, is akin to a white label Uber Eats, providing businesses an on-demand delivery platform under their own branding that connects them to gig economy couriers.
“I think about us as a post-purchase experience company,” co-founder and CEO Jaden Pereira told TechCrunch. “The recipient goes directly onto the merchant’s platform and places orders through them, so it feels like they’re interacting with the brand they purchased from throughout the entire experience. Our messages, notifications, tracking pages and delivery are all customized under the merchant’s brand name, but it’s powered by Tyltgo.”
The necessity of having products delivered during the pandemic’s shelter-in-place orders combined with the massive reach of e-commerce giants like Amazon has created a society that expects same-day deliveries. Tyltgo recognized the exclusionary nature of that reality on smaller businesses with less time and fewer resources, and contrived to remedy the situation with some innovative tech and gig economy couriers.
In July 2018, Pereira, 22, co-founded the company with fellow student and developer Aaron Paul while studying at the University of Waterloo. Pereira originally did deliveries himself as a side hustle, while building up a consumer-facing service on Shopify. In October 2019, Pereira and Paul shifted focus to B2B, identifying the real problem as merchants struggling to offer quality same-day delivery at an affordable price.
From December 2019 to December 2020, Tyltgo’s revenue grew 2,000%, says Pereira. The company started 2020 with two staff members and ended with nine, including former head of Uber Eats Canada’s marketplace operations, Joe Rhew, and former director of engineering at Goldman Sachs-acquired fintech company Financeit, Adnan Ali.
Aided by funding from VC firm TI Platform Management, Y Combinator and angel investor Charles Songhurst, Tyltgo projects another 1,500% revenue growth for 2021. The company’s goal is to expand its team, develop an API and app-based platform and add 100 more merchants across Ontario.
Pereira said Tyltgo originally focused on florists, and occasionally pharmacies, but demand from the restaurant industry led to the company’s new target — meal kit deliveries.
Meal kit services that provide the culinarily challenged with perfectly portioned ingredients and cooking instructions were already gaining popularity in the before times. When the pandemic hit, services like HelloFresh and Blue Apron saw even more growth. As restaurants struggled to keep their businesses open, many started to get in on the action, delivering restaurant-quality meals with instructions for heating and serving.
The global meal kit delivery services market is expected to reach almost $20 billion by 2027, with heat-and-eat options taking a large share of that market. Tyltgo is counting on the success of this industry. It has already secured partnerships with restaurants like General Assembly Pizza and Crafty Ramen, as well as with more traditional meal kit delivery services from grocery stores and organic farms.
Pereira said working in the “quasi-perishable space” of flowers and meal kits is both a challenge and a differentiator for the company. Depending on the contents of the delivery, Tyltgo will determine its perishability window and make sure to match that window with a driver. It’s also got an advanced fleet management platform that assigns a number of deliveries to suit the size of a courier’s vehicle.
“In the earlier days, the hardest part was being able to match those perishability windows without causing damage to the products,” said Pereira. “We all know that in logistics, you have to account for traffic, weather conditions, all these other things, but you have an eight-hour delivery window to get out 35 deliveries.”
Another challenge is ensuring the top-quality service Tyltgo advertises while working in the gig economy. Selecting for reliable couriers has slowed the company down at points, but Tyltgo aims to grow capacity only if it can simultaneously maintain a low error threshold.
“We won’t bring on a merchant if we don’t think we have the capacity to handle their deliveries and meet those expectations,” said Pereira.
Whether or not Tyltgo’s meal kit focus will end up driving scalability in the long run, the platform itself has legs. Pereira’s goal is to see Tyltgo become a part of every post-purchase customer experience for all retail trade categories, and that includes expanding into customer service, branding and transactions on top of delivery.
“The main reason why we’re doing this is because a lot of these smaller, brick-and-mortar retailers don’t have the time and resources to be able to compete with the Amazons of the world,” said Pereira. “We want to be able to put that power in their hands.”
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As expected, Southeast Asian superapp Grab is going public via a SPAC.
The combination, which TechCrunch discussed over the weekend, will value Grab on an equity basis at $39.6 billion and will provide around $4.5 billion in cash, $4 billion of which will come in the form of a private investment in public equity, or PIPE. Altimeter Capital is putting up $750 million in the PIPE — fitting, as Grab is merging with one of Altimeter’s SPACs.
Ride-sharing is a profitable business for Grab, though the segment did take a pandemic-induced whacking.
Grab, which provides ride-hailing, payments and food delivery, will trade under the ticker symbol “GRAB” on Nasdaq when the deal closes. The announcement comes a day after Uber told its investors it was seeing recovery in certain transactions, including ride-hailing and delivery.
Uber also told the investing public that it’s still on track to reach adjusted EBITDA profitability in Q4 2021. The American ride-hailing giant did a surprising amount of work clearing brush for the Grab deal. Extra Crunch examined Uber’s ramp toward profitability yesterday.
This morning, let’s talk through several key points from Grab’s SPAC investor deck. We’ll discuss growth, segment profitability, aggregate costs and COVID-19, among other factors. You can read along in the presentation here.
The impact on Grab’s operations from COVID-19 resembles what happened to Uber in that the company’s deliveries business had a stellar 2020, while its ride-hailing business did not.
From a high level, Grab’s gross merchandise volume (GMV) was essentially flat from 2019 to 2020, rising from $12.2 billion to $12.5 billion. However, the company did manage to greatly boost its adjusted net revenue over the same period, which rose from $1 billion to $1.6 billion.
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Mike Barile spent two years and racked up nearly $20,000 in credit card debt to bring his first startup, Backflip, to life.
The former management consultant had spent years toiling in the startup grind, first at Uber, then, after taking a coding academy bootcamp through AppAcademy (where Barile met his co-founder, Adam Foosaner), at Google and at a failed cryptocurrency startup.
Burned by the crypto experience, Barile was casting about for his next thing, and trying to find a way to scrape up some rent money, when he hit on the idea for Backflip. The experience of selling electronics online was still shady and Barile and Foosaner thought there had to be a better way.
That way became Backflip. It offers customers cash on delivery for their used electronics — anything from Androids to Xboxes and Apple devices to Game Boys.
“When I first started working on backflip back in March 2019, I met this kid named Chris and he wanted to buy some of my old iPhones. He had been a student at USF and as a side hustle he started buying used devices and would refurbish them and then either sell them himself or sell them to an official reseller,” said Barile. “Chris started making so much money he dropped out of school. That was a ‘holy shit’ moment. He can make a lot of money doing this and he’s doing a really good thing.”
The problem, said Barile, was safety. “He’s got all these devices he’s acquiring paying cash for and he’s driving all around town… Everyone who works in the [refurbish and resell] industry has at least one story about getting robbed at gunpoint.”
Backflip solved that problem by being the intermediary between buyers and sellers and taking a small commission for managing the transaction.
The company raised its first money at the end of 2019, but before that, Foosaner and Barile lived off of credit and used electronics.
So far, Backflip has facilitated the exchange of roughly 3,000 devices. The company handles everything from wiping a device and ensuring its quality to finding a buyer for the electronics. The company pays out roughly $150 per device and has deposited a little over $500,000 with users of the service, according to data provided by the company.
“We did all sorts of stuff to get our first few users,” said Barile. We posted ads on Facebook Marketplace and Craigslist. We started experimenting at the end of the summer with the most bare-bones mobile app kind of thing. At that point it was just Adam and I,” Barile said.
Starting now, Backflip is working with UPS stores to provide in-person drop-off and packaging centers for the used electronics. Over time, Barile sees those services expanding to offer cash on delivery. “The experience will be similar to an Amazon return,” he said. “Except we’ll be paying you.”
Currently about half of the company’s inventory is used handsets and mobile devices, but Barile said that could drop to a third of inventory as word spreads about the hundred-odd pieces of electronics that Backflip is willing to accept.
“Unlike other resale options, Backflip prioritizes the user’s time and convenience,” said Foosaner in a statement. “Forget the back-and-forth of negotiating over price and scheduling a meetup. We’re here to do all the work for the seller and make sure they get paid fairly and quickly. Backflip users can know that they’re getting the most for their devices without having to do anything other than bring them to The UPS Store or box them up at home.”
The connection to the refurbishing community started early for Barile, whose mother had a side business called “Stone Cottage Workshop” where she was flipping refurbished furniture on eBay and at local thrift stores near Barile’s bucolic New Jersey hometown.
“We want to build the Amazon of making things disappear from your apartment,” Barile said.
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As the Ubers of the world continue to scale, a smaller on-demand transportation startup has raised some funding in Germany, underscoring the opportunities that remain for startups in the space targeting specific service niches. Blacklane — the Berlin startup that provides on-demand black-car chauffeur services in Berlin, London, Dubai, Los Angeles, New York, Paris, Singapore and 16 other cities — has closed a round of €22 million ($26 million at current rates). After taking a majority stake in Havn, the Jaguar-hatched electric car service in London, in February, Blacklane said that it will be using this latest round of funding to continue expanding sustainable travel initiatives, and to continue expanding its existing business with more flexible options for riding.
The funding, which is being made at an up round valuation, is a sign of how the company is showing signs of growth after a year in which monthly revenues dropped 99% in the wake of the COVID-19 pandemic and the resulting drop in travel, and specifically people willing to be in small spaces that are shared with others.
“The global travel and mobility industries have suffered, with several players struggling between drastic cuts, hibernation or ceasing operations. Blacklane has taken the opportunity to cater to travelers’ emerging needs,” said Dr. Jens Wohltorf, CEO and co-founder of Blacklane, in a statement. “Thanks to this financing, we will continue to fast-track our innovation, with zero layoffs.”
The company said that the investment is coming from existing investors German automotive giant Daimler, the UAE’s ALFAHIM Group and btov Partners. And while it is coming at an up round, Blacklane is not disclosing any figures, nor has it ever disclosed valuation. Previous backers of the company also include the strategic investment arm of Recruit Holdings, the Japanese HR giant, and it has raised around $100 million to date, including a round of about $45 million in 2018.
The funding is coming after what has been an extremely rough year for travel and transportation startups due to the COVID-19 pandemic, with Blacklane itself seeing monthly revenues drop 99% after the pandemic hit last year, the company tells me.
Some others in the space that diversified into other areas like food delivery or other kinds of transport (e.g. bikes or scooters) were able to offset declines in their more core ride-hailing services, which in the meantime were repositioned as a safer alternative to public transportation. Blacklane, however, had never positioned itself as a ride for “everyman” — its core use case were higher-end rides and airport trips (which had also died a death) — so when movement shut down, Blacklane’s business nosedived.
It was particularly bad timing for Blacklane, considering that in the lead up to the pandemic, it looked to be on course to turn a profit on its focused model. (While financials for 2020 will take a while to be posted, the most recent results for the company showed a net loss of about $18 million in 2018.)
The reason that Blacklane has managed to raise at an up round tells another side of the story, however.
As companies in transport and travel gingerly started to show the smaller signs of recovery last summer, so too did Blacklane. It coupled that with the first steps of diversification itself.
Earlier this month, it added “chauffeur hailing” in 22 cities, an on-demand service that reduced the lead time for an order to under 30 minutes (its previous service was based on more advanced bookings). It also changed its pricing structure to get more competitive on shorter distances, since so many of the airport rides that were the basis of its revenues have yet to return.
In addition to that, Blacklane took a majority stake in Havn, an electric-based car service hatched by Jaguar, for an undisclosed sum, to spearhead a move into more sustainable travel options alongside the fleet of Teslas already operated by Blacklane.
“Worldwide travel restrictions give us a one-time chance to reset our expectations for safe and sustainable trips,” said Wohltorf in a statement. “Blacklane will recover responsibly and continue to grow while caring for both people and the planet.”
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