New York’s David Energy has raised $4.1 million to ‘build the Standard Oil of renewable energy’

“We intend to build the Standard Oil of renewable energy,” said James McGinniss, the co-founder and chief executive of David Energy, in a statement announcing the company’s new $19 million seed round of debt and equity funding. 

McGinniss’ company is aiming to boost renewable energy adoption and slash energy usage in the built environment by creating a service that operates on both sides of the energy marketplace.

The company combines energy management services for commercial buildings through the software it has developed with the ability to sell energy directly to customers in an effort to reduce the energy consumption and the attendant carbon footprint of the built environment.

The company’s software, Mycor, leverages building demand data and the assets that the building has at its disposal to shift user energy consumption to the times when renewable power is most available, and cheapest. 

It’s a novel approach to an old idea of creating environmental benefits by reducing energy consumption. Using its technology, David Energy tracks both the market price of energy and the energy usage by the buildings it manages. The company sells energy to customers at a fixed price and then uses its windows into energy markets and energy demand to make money off of the difference in power pricing.

That’s why the company needed to raise $15 million in a monthly revolving credit facility from Hartree Partners. So it could pay for the power its customers have bought upfront.

Image Credit: Getty Images

There are a number of tailwinds supporting the growth of a business like David Energy right now. Given the massive amounts of money that are being earmarked for energy conservation and energy efficiency upgrades, companies like David, which promise to manage energy consumption to reduce demand, are going to be huge beneficiaries.

“Looking at the macro shift and the attention being paid to things like battery storage and micro grids we do feel like we’re launching this at the perfect time,” said McGinniss. “We’re offering [customers] market rates and then rebating the savings back to them. They’re getting the software with a market energy supply contract and they are getting the savings back. It’s is bringing that whole bundled package together really brings it all together.”

In addition to the credit facility, the company also raised $4.1 million in venture financing from investors led by Equal Ventures and including Operator Partners, Box Group, Greycroft, Sandeep Jain and Xuan Yong of RigUp, returning angel investor Kiran Bhatraju of Arcadia, and Jason Jacobs’ recently launched My Climate Journey Collective, an early-stage climate tech fund. 

“Renewable energy generators are fundamentally different in their variable, distributed, and digitally-native nature compared to their fossil fuel predecessors while customer loads like heating and driving are shifting to electricity consumption from gas. The sands of market power are shifting and incumbents are poorly-positioned to adapt to evolving customer needs, so there’s a massive opportunity for us to capitalize.” 

Founded by McGinniss, Brian Maxwell and Ahmed Salman, David Energy raised $1.5 million in pre-seed financing back in March 2020.

As the company expands, its relationship with Hartree, an energy and commodities trading desk, will become even more important. As the startup noted, Hartree is the gateway that David needs to transact with energy markets. The trader provides a balance sheet for working capital to purchase energy on behalf of David’s customers.

 

“Renewables are causing fundamental shifts in energy markets, and new models and tools need to emerge,” said Dinkar Bhatia, Co-Head of North American Power at Hartree Partners. “James and the team have identified a significant opportunity in the market and have the right strategy to execute. Hartree is excited to be a commodity partner with David Energy on the launch of the new smart retail platform and is looking forward to helping make DE Supply the premier retailer in the market.”

David now has retail electricity licenses in New York, New Jersey, and Massachusetts and is looking to expand around the country.

“David energy stands to reinvent the way that hundreds of billions of dollars a year in energy are consumed,” said Equal Ventures investor Rick Zullo. “Business model creativity and finding ways to change user behavior with new models is just as important if not more important than the technology innovation itself.”

Zullo said his firm pitched David Energy on leading the round after years of looking for a commercial renewable energy startup. The core insight was finding a service that could appeal not to the new construction that already is working with top-of-the-line energy management systems, but with the millions of square feet that aren’t adopting the latest and greatest energy management systems.

“Finding something that will go and bring this to the mass market was something we had been on the hunt for really since the inception of Equal Ventures,” said Zullo.

The innovation that made David attractive was the business model. “There is a landscape of hundreds of dead companies,” Zullo said. “What they did was find a way to subsidize the service. They give away at low or no cost and move that in with line items. The partnership with Partree gives them the opportunity to be the cheapest and also the best for you and the highest margin regional energy provider in the market.”


Source: Tech Crunch

Announcing the agenda for TechCrunch Sessions: Justice

TC Sessions: Justice, our second-ever dedicated event to diversity, equity, inclusion and labor in tech, is coming up on March 3, 2021. This is a virtual one-day conference featuring the brightest innovators, leaders and worker-activists in the industry.

We’re pumped to be able to host Backstage Capital founder and Managing Partner Arlan Hamilton, Gig Workers Collective’s Vanessa Bain, Alphabet Workers Union Executive Chair Parul Koul, Color of Change President Rashad Robinson, Anti-Defamation League CEO Jonathan Greenblatt and others.

In addition to the firesides and panel discussions of the virtual stage, the event will also include networking, startup presentations and the chance to connect with attendees from around the world.

Below, you’ll find the official agenda for TC Sessions: Justice. It’s a packed day already, but we’ve got some extra surprises in store, so keep an eye on the agenda over the coming weeks for more great speakers we’re adding.

If you want to be a part of this event, you can grab a ticket here for just $5.

If you’re interested in a sponsored speaking opportunity to join the stage with these fantastic speakers, contact us here to speak with someone from our sales team!

AGENDA

Wednesday, March 3

State of the Union with Parul Koul (Google), Grace Reckers (Office and Professional Employees International Union), and Clarissa Redwine (NYU)

Labor unions have been fairly uncommon in tech. That’s finally starting to change in recent years, as workers have pushed to organize at some the industry’s biggest companies, from Alphabet to Kickstarter. Parul Koul (Google), Grace Reckers (Office and Professional Employees International Union) and Clarissa Redwine (NYU) will join us to discuss the growing movement.

Finding the Next Unicorn with Arlan Hamilton (Backstage Capital)

Arlan Hamilton, the founder and managing partner of Backstage Capital, has raised more than $12 million to back 150 companies led by underrepresented founders. In this session, Hamilton will discuss how she vets the biggest opportunities in investment, and how to disrupt in a positive way.

The Path Forward For Essential Tech Workers with Vanessa Bain (Gig Workers’ Collective), Jessica E. Martinez (National Council for Occupational Safety and Health), and Christian Smalls (The Congress of Essential Workers)

Gig workers and warehouse workers have become essential in a pandemic-ravaged economy. In California, a law went into effect earlier this year that makes gig workers independent contractors. Meanwhile, Amazon warehouse workers in Alabama are actively seeking to form a union to ensure better protections at the workplace. You’ll hear from workers and organizers about what’s next for gig workers and tech’s contractor workforce, and what battles lie ahead for these essential workers.

Identifying and Dismantling Tech’s Deep Systems of Bias with Haben Girma (Disability Justice Lawyer), Mutale Nkonde (AI for the People), and Safiya Umoja Noble (UCLA)

Nearly every popular technology or service has within it systems of bias or exclusion, ignored by the privileged but obvious to the groups affected. How should these systems be exposed and documented, and how can we set about eliminating them and preventing more from appearing in the future? AI for the People’s Mutale Nkonde, disability rights lawyer Haben Girma, and author of Algorithms of Oppression Safiya Umoja Noble discuss a more inclusive future.

Founders in Focus with Tracy Chou (Block Party)

We sit down with the founders poised to be the next big disruptors in this industry. Here we chat with Tracy Chou of Block Party, which works to protect people from abuse and harassment online.

The Role of Online Hate and Where Social Media Goes From Here with Naj Austin (Somewhere Good and Ethel’s Club), Jesse Lehrich (Accountable Tech), and Rashad Robinson (Color of Change)

Toxic culture, deadly conspiracies and organized hate have exploded online in recent years. We’ll discuss how much responsibility social networks have in the rise of these phenomena and how to build healthy online communities that make society better, not worse.

Networking Break

With our virtual platform, attendees can network via video chat, giving folks the chance to make meaningful connections. CrunchMatch, our algorithmic matching product, will be available to ensure you’re meeting the right people at the show, as well as random matching for attendees who are feeling more adventurous.

Demystifying First-Check Fundraising with First-Check Investors with Brian Brackeen (Lightship Capital), Astrid Scholz (Zebras Unite), and Sydney Thomas (Precursor Ventures) 

There are so many ways to finance your startup that don’t include Y combinator or a traditional fund. In this stacked panel, founders will hear from a trio of decision-makers about how to leverage unconventional communities and resources to get the first dollars they need to execute.

Meeting of the Minds with Wade Davis (Netflix) and Bo Young Lee (Uber)

Diversity and inclusion as an idea has been on the agenda of tech companies for years now. But the industry still lacks true inclusion, despite best efforts put forth by heads of diversity, equity and inclusion at these companies. We’ll seek to better understand what’s standing in the way of progress and what it’s going to take to achieve real change.

Access All Areas: Designing Accessibility From Day One with Cynthia Bennett (Carnegie Mellon University), Srin Madipalli (former Accomable and Airbnb), and Mara Mills (NYU)

The session will examine the importance of ensuring accessible product design from the beginning. We’ll ask how the social and medical models of disability influence technological evolution. Integrating the expertise of disabled technologists, makers, investors, scientists, software engineers into the DNA of your company from the very beginning is vital to the pursuit of a functioning and equitable society. And could mean you don’t leave money on the table.

Creating New Opportunities For Formerly Incarcerated People with Jason Jones (The Last Mile), Deepti Rohatgi (Slack), and Aly Tamboura (Chan Zuckerberg Initiative)

Reentering society after having been incarcerated presents challenges few of us can understand. In this panel, we will examine the role tech can play in ensuring pathways to employment for returned citizens.

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Source: Tech Crunch

Encrypted data handling startup DataFleets acquired by LiveRamp for over $68M

LiveRamp has acquired DataFleets, a fresh young startup that made it possible to take advantage of large volumes of encrypted data without the risk or fuss of decrypting or transferring it. LiveRamp, an enterprise data connectivity platform itself, paid more than $68 million for the company, a huge multiple on DataFleet’s $4.5 million seed announced just last fall.

DataFleets saw the increasing need for sensitive data like medical or financial records to be analyzed or used to train machine learning models. Not only are such databases bulky and complex, making transfers difficult, but allowing them to be decrypted and used elsewhere opens the door to errors, abuse and hacks.

The company’s solution was essentially to have software on both sides of the equation, the data provider (perhaps a hospital or bank) and the client (an analyst or AI developer), and act as a secure go-between. Not for the sensitive data itself, but for the systems of analysis and machine learning models that the client wanted to set loose on the data. This allows the client to perform an automated task on the data, such as harvesting and comparing values or building an ML model, without ever having direct access to it.

Clearly this approach seemed valuable to LiveRamp, which provides a number of data connectivity services to major enterprise customers, household names in fact. They announced in their earnings statement last night that they paid $68 million up front for DataFleets, though that price does not reflect the various other incentives and deferred payments that many such deals involve, and in this case seem likely to remain private.

The deal will probably result in the retiring of the DataFleets brand (young as it was), but their various customers will probably make the trip to LiveRamp. The most recent of those is HCA Healthcare, a major national provider that just announced a COVID-19 data sharing consortium that would be using DataFleets’s services. That’s a pretty powerful validation for an approach just commercialized late last year, and a nice catch for LiveRamp to add to its healthcare client collection.

For its part LiveRamp plans to use its augmented services to expand its operations and offerings in Europe, Asia and Latin America over the coming year. The company has also called for a federal data privacy law, something that hopefully that will be achieved under the new administration.


Source: Tech Crunch

OptioLend launches new marketplace to become ‘the LendingTree of commercial real estate’

The commercial real estate industry is facing its share of challenges, considering the fact that so many people are working from home (and not in offices) and retail is riding a slippery slope as more people shop online.

But from downturns, opportunity emerges.

Enter OptioLend, a new startup that wants to help individual investors take advantage of opportunities in commercial real estate by connecting them with “the best possible” lenders. The Columbus, Ohio-based company launched its marketplace Tuesday after months of operating in private beta.

The new platform uses an AI-powered algorithm and a database of more than 9,500 capital sources to help prospective real estate borrowers in search of debt financing find lenders “with the best terms.” In other words, the company’s self-proclaimed mission is to become the “LendingTree for commercial real estate.” (For the unacquainted, Charlotte, North Carolina-based LendingTree is an online marketplace that provides consumers multiple offers from several lenders for things like mortgage, student and personal loans.)

In fact, Joel Lowery, a former LendingTree executive who built the back end of that company’s platform, helped build out the OptioLend portal serving in a technical advisor capacity along with former data scientists at IBM.

Once an investor applies for a loan, OptioLend identifies up to 20 lenders best suited for that application based on recent lending history and other criteria. Borrowers and brokers can negotiate and close deals from within the company’s platform via the mostly automated process, the company claims. But it’s also launching “with a concierge service of experienced capital advisors” to help guide users who need help during the loan procurement process.

To get off the ground, OptioLend last year raised about $1 million in seed funding led by the Schottenstein Family Office with participation from Loud Capital and MLG Ventures. For context, the Schottenstein family is one of the largest private real estate owners in the country.

CEO Richard Geisenfeld said there’s a plethora of lenders that can lend at that price point, whereas there is “a relatively small pool of capital sources” that focus on deals above $10 million.

“Capital markets are experiencing a 50% surge in refis and new loans as the markets start to rebound from COVID,” he said. “And as existing loans start coming due, we think we’re in a perfect timing to roll out. Properties are going to be repurposed, and are already starting to be.”

And while OptioLend can work with institutions and individual investors, it’s more focused on the latter.

Institutions have a lot of choices,” Geisenfeld said. “Individual investors do not.

Geisenfeld said he comes from a family of developers and himself has closed about $1.7 billion worth of transactions in 44 states as founder of Capital Commercial Partners. He’d been representing the Schottenstein family for nearly 20 years before the concept behind OptioLend emerged.

As an experiment prior to the formation of OptioLend, the family office had reached out to more than 50 lenders in an effort to finance the purchase of a small single tenant, triple net portfolio. They were surprised to discover that the interest rates varied as much as a full percentage point.

“Every time we did a deal with them, we’d hear anecdotally there were better [loan] rates out there and they agreed that we needed to create some kind of efficiency and automation,” Geisenfeld told TechCrunch. “So I went to one of my colleagues and asked ‘how do we change the paradigm from the traditional methodology?’ And that’s the problem we’re out to solve — by increasing an investor’s access to capital by 10 times in 10 minutes.”

The startup says it not only helps investors with new loan applications, but it can also help them refinance existing assets. Its sweet spot is on transactions in the middle market — in the $1 million to $10 million range.

OptioLend will work with commercial real estate and mortgage brokers alike either by allowing them to use the platform directly or to refer property owners to it. Their incentive for referrals is earning up to 50% of the original fees.

David Schottenstein, principal of Schottenstein Family Office, noted in a written statement that in today’s market, borrowers with limited access to capital sources sometimes sign onto loan terms with interest rates “as much as 100 basis points higher than they have to.” 

“OptioLend’s ability to get deals in front of multiple lenders quickly helps ensure that borrowers are getting the best terms possible,” he added.


Source: Tech Crunch

Silenced No More Act seeks to ban use of NDAs in situations involving harassment or discrimination

Ifeoma Ozoma, a former Pinterest employee who alleged racial and gender discrimination at the company, is co-leading new legislation with California State Senator Connie Levya and others to empower those who experience workplace discrimination and/or harassment. Introduced today, the Silenced No More Act (SB 331) would prevent the use of non-disclosure agreements in workplace situations involving all forms of discrimination and harassment.

“It is unacceptable for any employer to try to silence a worker because he or she was a victim of any type of harassment or discrimination—whether due to race, sexual orientation, religion, age or any other characteristic,” Levya said in a statement. “SB 331 will empower survivors to speak out—if they so wish—so they can hold perpetrators accountable and hopefully prevent abusers from continuing to torment and abuse other workers.”

This proposed bill would expand the current protections workers have through the Stand Together Against Non-Disclosures Act, also authored by Levya, that went into effect 2019. Ozoma, along with former coworker Aerica Shimizu Banks, came forward with claims of both racial and gender discrimination last year. They eventually settled with Pinterest, but the STAND Act technically only protected them for speaking out about gender discrimination. This new bill would ensure workers are also protected when speaking out about racial discrimination.

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“It was a legal gamble,” Ozoma told TechCrunch about coming forward with claims of both racial and gender discrimination, despite having signed an NDA. Pinterest could’ve decided to sue both Ozoma and Banks, Ozoma said, but that would’ve required the company to admit wrongdoing.

“Technically, we weren’t [supposed to talk about racial discrimination] and that’s what most companies bank on,” she said.

It’s a long road ahead for the bill, which needs to be passed by the legislature and ultimately signed into law by CA Governor Gavin Newsom, but it would represent a monumental shift in the tech industry, if passed.

“It would be huge and not just for tech, but for your industry as well,” she told me. “I believe that we don’t have real progress unless we approach things intersectionally and that’s the lesson from all of us.”


Source: Tech Crunch

Two $50M-ish ARR companies talk growth and plans for the coming quarters

Lost amongst all the IPO chatter of the mega-unicorns are a crop of companies reaching their stride, often flush with capital, ready with big plans, and still with some time before they go public. This group of companies are what we’re calling our $50 million annual recurring revenue (ARR) group, though we’re not too strict on that revenue figure.

Close enough will do.

A little bit ago we kicked off the series by looking at  OwnBackup and Assembly. Today we’re continuing the series, digging into SimpleNexus and PicsArt. Next up is and Synack, and we have an interview with Kaseya on deck. The latter company is a bit oversized for our cohort, but we’ll figure out what to do with our notes from that chat in due time.

As a reminder, we’re looking at startups that are around the $50 million ARR mark because our 2020 exploration of $100 million ARR companies wound up merely taking looks at companies, like Lemonade, that were going public in short order. We’ll still do the occasional piece on the group, but we’re focusing on smaller firms this year.

So, into the breach with notes on SimpleNexus and PicsArt, drawing on public information concerning their fundraising history and product, and interviews with both companies. Let’s see what we can learn from their growth!

SimpleNexus

SimpleNexus is a Utah-based technology company that provides digital mortgage software. The company most recently raised $108 million in January of this year, a Series B that we sadly lack a valuation for.

The company is growing quickly, with founders Matt Hansen and Ben Miller telling TechCrunch that they expect to scale from $30 million to $58 million in the next 12 months. That puts the the company comfortably into our new group.

SimpleNexus’s product is sold to banks and other financial institutions, helping provide a hub — a simple nexus, if you will — providing consumers a single login to manage their home-buying process from search to purchase. The software itself is sold on a SaaS basis, often white-labeled to banks.

But while SimpleNexus has seen success with its current model, claiming to touch around one in every eight mortgages, its founders told TechCrunch in a video call that they have bigger aspirations. Hansen, who is also the company’s CEO, said that in the future its service could stick with customers after they buy a home, perhaps helping them connect utilities, find appraisers, and manage their home.

TechCrunch was curious about the company’s recent capital raise, and how it may impact SimpleNexus’s ramp to nearly $60 million in revenue by January 2021. Per the company, it wasn’t looking for capital, but after receiving some inbound offers to sell its entire business, which weren’t what its founders wanted, it decided to raise more external capital instead. Insight, which led the round, was excited about their company, the founders said, thanks to its customer growth and revenue expansion.


Source: Tech Crunch

The Rust programming language finds a new home in a non-profit foundation

Rust — the programming language, not the survival game — now has a new home: the Rust Foundation. AWS, Huawei, Google, Microsoft and Mozilla banded together to launch this new foundation today and put a two-year commitment to a million-dollar budget behind it. This budget will allow the project to “develop services, programs, and events that will support the Rust project maintainers in building the best possible Rust.”

Rust started out as a side project inside of Mozilla to develop an alternative to C/C++ . Designed by Mozilla Research’s Graydon Hore, with contributions from the likes of JavaScript creator Brendan Eich, Rust became the core language for some of the fundamental features of the Firefox browser and its Gecko engine, as well as Mozilla’s Servo engine. Today, Rust is the most-loved language among developers. But with Mozilla’s layoffs in recent months, a lot of the Rust team lost its job and the future of the language became unclear without a main sponsor, though the project itself has thousands of contributors and a lot of corporate users, so the language itself wasn’t going anywhere.

A large open-source project often needs some kind of guidance, which the new foundation will provide — and it takes a legal entity to manage various aspects of the community, including the trademark, for example. The new Rust board will feature five board directors from the five founding members, as well as five directors from project leadership.

“Mozilla incubated Rust to build a better Firefox and contribute to a better Internet,” writes Bobby Holley, Mozilla and Rust Foundation Board member, in a statement. “In its new home with the Rust Foundation, Rust will have the room to grow into its own success, while continuing to amplify some of the core values that Mozilla shares with the Rust community.”

All of the corporate sponsors have a vested interest in Rust and are using it to build (and rebuild) core aspects of some of their stacks. Google recently said that it will fund a Rust-based project that aims to make the Apache webserver safer, for example, while Microsoft recently formed a Rust team, too, and is using the language to rewrite some core Windows APIs. AWS recently launched Bottlerocket, a new Linux distribution for containers that, for example, features a build system that was largely written in Rust.


Source: Tech Crunch

WeWork is apparently doing better, not that SoftBank wants you to talk about that

SoftBank’s earnings always leads to a bonanza of news. One storyline that has dominated the company’s earnings over the past few years that has all but disappeared though is WeWork.

The co-working company, which saw its scorching-hot flame dim a few years ago and which has been parlayed into such books as Billion Dollar Loser, is all but invisible in SoftBank’s presentations these days. The company, despite being one of the largest investments in the company’s $98.6 billion Vision Fund, is not mentioned in the firm’s quarterly update, and the company’s investor presentation also has no mention of the company. (Its logo does appear on the portfolio page, although it is buried with all the other logos).

Yet, for all the doom that has been emanating from WeWork, from its financial shenanigans to dealing with the workplace in a post-COVID-19 world, results apparently are better than what might be expected.

Buried in the footnotes of SoftBank’s earnings report today is some good news related to WeWork. The Japanese telco conglomerate recognized improvements of $1.36 billion in various credit facilities for WeWork compared to its figures in the first three months of 2020.

Given WeWork’s instability, SoftBank had set aside large sums of capital to cover the rent and mandatory loan payments of WeWork in order to shore up the company’s financial picture. However, “mainly due to the improvement in the credit risk of WeWork” according to SoftBank, the risk profile of those loans has improved quite a bit, and the company no longer feels the need to offer as much of a financial buffer as it did nine months previous.

Now, that could just be some innovative accounting engineering, but that improvement in WeWork’s performance mirrors rumors heard in recent weeks that the company is expected to once again attempt to head to the public markets.

Last week, the Wall Street Journal reported that WeWork was looking to go public via SPAC for a rumored price of $10 billion. No deal has yet been announced, and while SoftBank is in the process of raising two more SPACs for a grand total of three, it is unlikely to merge WeWork through its own vehicles.

While that $10 billion market cap is far below some of the most bullish prices that WeWork was pumping investors on back during its roadshow in September 2019, it nonetheless shows that the company may not be the financial albatross it was two years ago.


Source: Tech Crunch

DoorDash acquires salad-making robotics startup, Chowbotics

DoorDash is expanding its robotic footprint into the kitchen. The delivery service is set to acquire Chowbotics, a Bay Area-based robotics best known for its salad-making robot, Sally. TechCrunch has confirmed the acquisition, which was first noted by The Wall Street Journal.

“We have long admired the work that Chowbotics has done to increase access to fresh meals, with its groundbreaking robotics product and vision,” DoorDash co-founder Stanley Tang said in a comment offered to TechCrunch. “At DoorDash, we are always working to innovate and continue improving how we support our merchant partners and their success — and are excited to leverage this technology to do so in new ways. With the Chowbotics team on board, we can explore new use cases and customers, providing another service to help our merchants grow.”

Founded in 2014, Chowbotics has raised around $21 million to date, including an $11 million round back in 2018. The company’s vending machine-style salad bar robot was already well-positioned for the pandemic, removing a human element from the food preparation process — not to mention the fact that salad bars and buffets tend to be open air affairs. In October, the startup added a contactless feature to the robot, letting users order ahead of time, via app.

“Joining the DoorDash team unlocks new possibilities for Chowbotics and the technology that this team has built over the past seven years,” CEO Rick Wilmer said in a statement. “As the leader in food delivery and on-demand logistics, DoorDash has the unparalleled reach and expertise to help us grow and deploy our technology more broadly, so together, we can make fresh, nutritious food easy for more people.”

It’s not entirely clear how the company’s technology will fit into the delivery service’s current offering, though DoorDash notes it will “improve consumer access to fresh and safe meals, and enhance our robust merchant offerings and logistics platform.” It also remains to be seen whether Chowbotics will continue to operate as its own entity within the broader DoorDash. We’ve reached out for more insight.

“At DoorDash, we strive to become a merchant’s first call when they want to grow their business,” Tang said. “What excites us most about Chowbotics is that the team has developed a remarkable tool for helping merchants grow. Bringing Chowbotics’ technology into the DoorDash platform gives us a new opportunity to help merchants expand their current menu offerings and reach new customers in new markets — which is a fundamental part of our merchant-first approach to empowering local economies.”

DoorDash has been working with robotics companies for a number of years now. Perhaps the most prominent example is a partnership with Starship Technologies to explore food delivery robots. Though that technology has seen a fair number of roadblocks among local officials not eager to turn their sidewalks over to robots. The delivery company likens Chowbotics’ kiosk-style technology to its work with ghost kitchens, effectively serving as a conduit to help expand food options at local merchants – be it in store or through delivery. The former will likely be of more interest once the current pandemic is in the rear view.

Details of the acquisition have not been disclosed.


Source: Tech Crunch

Amazon warehouse workers begin historic vote to unionize

On Friday, the National Labor Relations Board rejected Amazon’s attempt to delay a union vote set to begin on Monday, February 8. For many, the online giant’s bid was seen as a stalling tactic, including a motion to demand votes take place in-person — a clear health risk, as the COVID-19 virus still poses a major threat in the United States and globally.

“Once again Amazon workers have won another fight in their effort to win a union voice,” Retail, Wholesale and Department Store Union President Stuart Appelbaum said in a statement regarding the NLRB’s decision. “Amazon’s blatant disregard for the health and safety of its own workforce was demonstrated yet again by its insistence for an in-person election in the middle of the pandemic. Today’s decision proves that it’s long past time that Amazon start respecting its own employees; and allow them to cast their votes without intimidation and interference.”

Amazon, however, said it was disappointed in the decision because it goes against the company’s goal of getting as many people as possible to vote in the election, Amazon spokesperson Heather Knox said in a statement to TechCrunch.

“Even the National Labor Relations Board recognizes that the employee participation rate for its own elections conducted with mail ballots is 20-30% lower than the participation rate for in-person voting,” Knox said. “Amazon proposed a safe on-site election process validated by COVID-19 experts that would have empowered our associates to vote on their way to, during and from their already-scheduled shifts. We will continue to insist on measures for a fair election that allow for a majority of our employee voices to be heard.”

Now, the mail-in voting process will continue as planned and ultimately determine whether Amazon’s Alabama warehouse — which employs around 6,000 — will join the RWDSU, an AFL-CIO affiliate in operation since 1937. The move would be a major watershed moment for Amazon’s blue-collar workforce — and could spur similar unionizing among the 110 or so fulfillment centers the company operates across the U.S.

The vote comes amid a sea change for both blue and white-collar workers in a tech sector that has traditionally rejected such movements. Notable recent examples include a group of Google contracts in Pittsburgh, followed by this year’s launch of an Alphabet Workers Union that includes more than 800 employees. Last February, Kickstarter voted to unionize its workforce, followed by developer platform Glitch the following month.

Tech workers unionize

Unions, which act as an intermediary between workers and their employers, advocate on behalf of employees for better wages, working conditions and other benefits through collective bargaining. While it does cost money to join a union, unionized workers tend to make higher salaries than their non-unionized counterparts. Among full-time wage and salary workers, union members had median weekly earnings of $1,144, compared to $958 for non-union members in 2020, according to the U.S. Bureau of Labor Statistics.

Often times these unions are the product of months or years of planning behind the scenes — likely not a surprise for anyone possessing a basic knowledge of the history of labor in the United States. The formation of an Amazon union would present a historic move for labor and tech in the U.S. — a potential outcome the company has been looking to stop dead in its tracks.

Besides seeking to delay the vote, Amazon has also gone all-in on trying to persuade its workers in Bessemer not to vote to unionize. Amazon’s Do It Without Dues website encourages workers to keep things the way they are, instead of having to pay union dues.

“If you’re paying dues…it will be restrictive meaning it won’t be easy to be as helpful and social with each other,” the site states. “So be a doer, stay friendly and get things done versus paying dues.”

Meanwhile, workers have complained that Amazon’s anti-union tactics are too much. One worker told The Washington Post they were bombarded with anti-union messaging in the bathroom stall.

Amazon opened the Bessemer warehouse in March 2020 and says it has created more than 5,000 full-time jobs starting with a pay of $15.30 per hour, including healthcare, vision and dental insurance, and 50% 401(K) match, Knox said. She described the work environment as “safe” and “innovative,” and added, “We work hard to support our teams and more than 90% of associates at our Bessemer site say they would recommend Amazon as a good place to work to their friends.”

But Amazon’s labor history has been a spotty one. The company has often come under fire for its treatment of workers — particularly those in logistics and shipping, like the 6,000 currently employed in its Alabama fulfillment center. Many of those issues were amplified throughout 2020, as Amazon employees were deemed “essential workers” in the earliest days of the pandemic’s arrival in the States.

In November, former warehouse employee Christian Smalls filed a suit against the company, citing a failure to provide workers with proper PPE amid the pandemic.

“I was a loyal worker and gave my all to Amazon until I was unceremoniously terminated and tossed aside like yesterday’s trash because I insisted that Amazon protect its dedicated workers from COVID-19,” Smalls said at the time. “I just wanted Amazon to provide basic protective gear to the workers and sanitize the workplace.”

Smalls was fired last March after organizing a walkout at a Staten Island fulfillment center. A spokesperson for the company told TechCrunch that he was fired after “putting the health and safety of others at risk and violations of his terms of employment.”

In April, employees Emily Cunningham and Maren Costa were fired for “repeatedly violating internal policies,” according to the company. The pair were vocal critics of the company’s treatment of warehouse employees — criticism that came to a head during the pandemic.

Then, in September, reports surfaced that Amazon was looking to hire an intelligence analyst. Specifically, Amazon in a job posting said it was seeking someone who would inform higher-ups and attorneys “on sensitive topics that are highly confidential, including labor organizing threats against the company.”

Amazon swiftly took down that job post, saying it was “not an accurate description of the role – it was made in error and has since been corrected,” Amazon spokesperson Maria Boschetti said in a statement to TechCrunch at the time.

While Amazon did not give a specific revised description, the company said the role is meant to support its team of analysts that focus on external events, like weather, large community gatherings or other events that have the potential to disrupt traffic or affect the safety and security of its buildings and the people who work at those buildings.

However, that same day, Vice reported Amazon had been spying on workers for years to monitor for any potential strikes or protests. Amazon has since said it will stop using its social media monitoring tool.

“We have a variety of ways to gather driver feedback and we have teams who work every day to ensure we’re advocating to improve the driver experience, particularly through hearing from drivers directly,” Boschetti said in a statement. “Upon being notified, we discovered one group within our delivery team that was aggregating information from closed groups. While they were trying to support drivers, that approach doesn’t meet our standards, and they are no longer doing this as we have other ways for drivers to give us their feedback.”

By unionizing, Amazon workers hope to gain the right to collectively bargain over their working conditions, like safety standards, pay, breaks and other issues. Unionizing would also enable workers to potentially become “just cause” employees versus at-will, depending on how the negotiations go.

“Amazon presents a threat to the very fabric of society and the social contract we work to uphold for all working people,” the union organizers state on their site. “Corporations like Amazon have built decades of increasingly bold and aggressive attacks on workers’ rights that have dramatically eroded union density, harmed working conditions, and lowered the standard of living for many workers. And it’s not stopping. The RWDSU has always stood against anti-worker and anti-union companies. Our union will not back down until Amazon is held accountable for these and so many more dangerous labor practices.”

Mail-in voting ends March 29, with the NLRB set to begin counting ballots the following day on a virtual platform. Each party will be allowed to have four people attend the count.

TechCrunch has reached out to Amazon and will update this story if we hear back.


Source: Tech Crunch