Archive for September, 2020

Postmates cuts losses in Q2 as it heads towards tie-up with Uber

Popular food delivery service Postmates is in the process of merging with Uber in a blockbuster $2.65 billion deal that would see it join forces with its food delivery competitor, Uber Eats. The deal remains under antitrust scrutiny, and has not yet been approved for closing. The deal is expected to close in the first half of 2021. However, a new SEC filing posted after hours this Friday gives us a glimpse into how Postmates is faring in the new world of global pandemics and sit-in dining closures across the United States. Postmates posted a loss of just $32.2 million in Q2, compared to a loss of $73 million in Q1, nearly cutting its cash burning in half. That compares to Uber Eats’ results, which showed a loss of $286 million in the first quarter of 2020 and a loss of $232 million in the second quarter — an improvement of roughly 20%, according to Uber’s most recent financial reports. Altogether, Postmates lost $105.2 million in the first half of 2020, compared to a loss of $239 million in the same period of 2019. Uber through its filing today also disclosed the cap table for Postmates in full detail for the first time. On a fully diluted basis, the largest shareholder in Postmates is Tiger Global, which owns 27.2% of the company. Following up is Founders Fund with 11.4%, Spark Capital with 6.9% and GPI Capital with 5.3%. At Uber’s $2.65 billion all-stock deal, that nets Tiger Global roughly $720 million and Founders Fund roughly $302 million, not including some stock preferences and dividends that certain owners of the company hold. While Postmates and Uber continue to go through the antitrust review process at the federal level, the companies also face legal pressure in their own backyards. Uber noted in its filing today that it and Postmates face headwinds due to California’s AB 5 bill, which is designed to give additional employment protections to freelance workers. However, the company notes that such litigation “may not, in and of itself, give rise to a right of either party to terminate the transaction.”

Daily Crunch: Reviewing the new Apple Watch

We’ve got an in-depth review of the Apple Watch Series 6, Apple gives Facebook a temporary break on App Store fees and Alexis Ohanian is raising a new fund. This is your Daily Crunch for September 25, 2020. The big story: Reviewing the new Apple Watch Brian Heater has already been writing about the Apple Watch Series 6, but now he’s published his full review. His verdict? Well, the core product hasn’t changed dramatically, but he notes that the biggest new feature, blood oxygen monitoring, requires a good fit, which makes sizing issues with the Solo Loop extra awkward. He also suggests that what we’re seeing now is just the tip of the iceberg when it comes to monitoring functionality. The verdict: Taken as a whole, the Series 6 isn’t a huge leap forward over the Series 5 — and not really worth the upgrade for those who already own that recent vintage. But there are nice improvements throughout, augmented by good upgrades to watchOS that make the best-selling smartwatch that much better, while clearly laying the groundwork for Apple Watches of the future. The tech giants Apple is (temporarily) waiving its App Store fee for Facebook’s online events — This arrangement will last until December 31 and will not apply to gaming creators. Twitter warns developers that their private keys and account tokens may have been exposed — Twitter has emailed developers warning of a bug that may have exposed sensitive data. Google Meet and other Google services go down — Yesterday was a rough day for Google’s engineers. Startups, funding and venture capital Alexis Ohanian files for a new $150M fund, with a nod to his Olympian family — According to an SEC filing, Ohanian is raising a new fund, named 776 (the first Olympics were supposedly held in 776 B.C.E.). Indonesian cloud kitchen startup Yummy gets $12 million Series B led by SoftBank Ventures Asia — Launched in June 2019, Yummy Corporation’s network of cloud kitchens now includes more than 70 facilities in Jakarta, Bandung and Medan. HumanForest suspends London e-bike sharing service, cuts jobs after customer accident — The service suspension comes only a few months after HumanForest started the trial in North London. Advice and analysis from Extra Crunch Want to hire and retain high-quality developers? Give them stimulating work — With demand for developers on the rise, companies are under pressure to do everything they can to attract and retain talent. Privacy data management innovations reduce risk, create new revenue channels — A new generation of infosec tools is needed to address the unique risks associated with the management of privacy data. 4 things to remember when adapting AI/ML learning models during a pandemic — New machine learning and AI-powered tools highlight a few pervasive challenges faced by both machines and the humans that create them. (Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.) Everything else Cambridge Analytica’s former boss gets 7-year ban […]