Gig workers get paid, Fidelity slashes Reddit's valuation and AI conquers Minecraft
Hey, folks, welcome to Week in Review (WiR), TechCrunch’s regular newsletter that recaps the week in tech. Hope the summer’s treating y’all well — it’s a balmy 90 degrees here in NYC! — and that some much-needed R&R is on the agenda.
Speaking of “agenda,” mark your calendars for Disrupt, TC’s annual conference, kicking off in September. Whether you’re a startup rookie learning the ropes or a founder hell-bent on changing the world, Disrupt will deliver the tools, knowledge and connections to help you make it happen. You don’t want to miss it.
Elsewhere, stay tuned for City Spotlight on June 7 (Wednesday), which will highlight Atlanta, Georgia, this go-round. Atlanta has emerged as one of the buzziest new hubs in the nation, with booming cybersecurity and software-as-a-service sectors as well as a slew of investors looking to back the hot new startups coming from the metro. Among the speakers at City Spotlight will be mayor Andre Dickens — we’re looking forward to hearing his perspective.
Now with the PSAs out of the way, here’s your WiR!
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Fidelity sours on Reddit: This week, Fidelity, the lead investor in Reddit’s most recent funding round in 2021, slashed the estimated worth of its equity stake in the social media platform by 41% since the investment. The devaluation, part of a broader trend that has hit a variety of growth-stage startups across the globe in the past year, raises uncertainties about whether Reddit will maintain its initial intent to reportedly go public at a valuation around $15 billion.
Amazon Prime Data: Amazon is considering offering low-cost or possibly free nationwide mobile phone service to Prime subscribers in the United States, according to a new report from Bloomberg. The tech giant is reportedly in talks with Verizon, T-Mobile, Dish Network and AT&T.
Gig workers get paid: Uber, Lyft, DoorDash and other app-based ride-hail and delivery companies will have to reimburse California gig workers potentially millions of dollars for unpaid vehicle expenses between 2022 and 2023. The back payments come from a provision in Proposition 22, the controversial law that classifies gig workers as independent contractors rather than employees and promises them half-hearted protections and benefits.
Volkswagen’s ace in the hole: Volkswagen is betting big on the upcoming ID.Buzz electric van. With availability of the vehicle still a year out, the automaker is counting on years of pent-up anticipation to not only sell the bus shrouded in nostalgia, but to also have it act as a halo product to bring customers to the brand’s entire EV lineup.
Shopify launches Shop Cash: Shopify’s Shop app is introducing a new rewards program called Shop Cash, the e-commerce platform announced on Friday. The new program is funded by Shopify and earns shoppers 1% back on purchases made using its Shop Pay online checkout service.
Stripe gets into credit: Stripe wants to make it easier for businesses to access credit. The private financial infrastructure giant announced a new charge card program today from Stripe Issuing, its commercial card issuing product. Denise Ho, head of product at Stripe, gave TechCrunch the exclusive details — go read the piece by Mary Ann.
AI conquers Minecraft: AI researchers have built a Minecraft bot that can explore and expand its capabilities in the game’s open world — but unlike other bots, this one basically wrote its own code through trial and error and lots of GPT-4 queries. Called Voyager, this experimental system is an example of an “embodied agent,” an AI that can move and act freely and purposefully in a simulated or real environment.
YouTube Shorts, in minutes: Dumme, a startup putting AI to practical use in video editing, is already generating demand before opening to the public. The Y Combinator–backed company has hundreds of video creators testing its product, which leverages AI to create short-form videos from YouTube content, and it has a waitlist of over 20,000 pre-launch, it says.
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Need a new podcast to get your weekend started right? Good news — TC has you covered (and then some). On Equity, the crew took a look at the latest from Web Roulette, Stripe’s acquisition of Okay, what Klarna’s Q1 means for the fintech market and QED and a16z’s early-stage strategies. Found spoke with Dr. Stacy Blain, the co-founder and chief science officer at Concarlo Therapeutics, about the company’s novel therapeutic solutions for drug-resistant cancer. Over at Chain Reaction, Gary Vaynerchuk, the chairman of VaynerX and the CEO of VaynerMedia and NFT collection VeeFriends, spoke on his experiences in the creative media industry. And the TechCrunch Live folks dove into how AI doomerism is overblown — and why the blowhards doing the blowing want it that way.
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TC+ subscribers get access to in-depth commentary, analysis and surveys — which you know if you’re already a subscriber. If you’re not, consider signing up. Here are a few highlights from this week:
Competition concerns in the age of AI: AI is rapidly changing how businesses sense, reason and adapt in the market. But these groundbreaking capabilities are creating an upheaval in how companies engage with competitors and consumers. Henry Hauser is counsel in Perkins Coie’s antitrust and litigation practice groups. He muses on this in an informative piece.
Salesforce becomes a data company: Could the data exhaust being generated by the Salesforce family of products become more valuable than the products themselves — at least in terms of new revenue adds? This piece explores the possibility.
Why don’t more scientists become founders?: Why is it so common to see outsiders bringing research out of the lab and not the scientists themselves? It’s a complex issue to unravel, but Rebecca does it deftly.
Source: TechCrunch
