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  • Glossier CEO: We’re Building this People-Powered Ecosystem

    Glossier CEO: We’re Building this People-Powered Ecosystem

    Glossier is both a beauty company and a tech company that is succeeding by staying incredibly connected to their customers. Glossier founder and CEO Emily Weiss says that they are building a people-powered ecosystem where they are co-creating with their customers.

    Not only do they ask for feedback from their customers, but they communicate with them on a Slack channel directly. This level of communication with consumers makes Glossier unique and is what powers their product creation and innovation.

    Emily Weiss, Glossier founder and CEO, recently discussed the people-powered ecosystem that makes Glossier a unique kind of company with Kara Swisher for her Recode Decode podcast:

    We’re Building this People-Powered Ecosystem

    Glossier is a pretty unique kind of beauty company that’s also a tech company. So it’s hard for me sometimes to answer that question, are you beauty or are you tech? I think we’re both. Right now at a glance were about 200 full-time employees across three offices in New York, Canada, and London. We’re about 70 percent female. Our board is 60 percent female. Our engineering team is 50 percent female. It looks a little different than most tech companies. We just crossed last year well over a $100 million in revenue. We’re very excited about that.

    The way we look at it is that we’re building this people-powered ecosystem. Since we launched four and a half years ago, we have co-created with our consumers. The reason we’re able to do that is because we know who they are. We have a direct relationship with every single person who buys something from us, unlike you all of the incumbent companies that have been built through retail channels. We’ve never existed through retail channels. We have no plans to exist through retail channels.

    Using Technology to Do Things Differently

    The reason being we think that through using technology we can do three things very differently than what all beauty companies have done in the past. One is channel. The second is discovery. The third is listening at scale. Fundamentally, we just think about how do to give people amazing experiences.

    In that way perhaps we’re similar to Amazon in that they’re extremely devoted to the customer. We’re very devoted to the customer from the standpoint that we don’t want to put things that aren’t amazing into the world.

    Since we launched we’ve always relied a lot on user-generated content and feedback. We really started out of a blog that began in 2010 that was all around this premise that people are going to drive purchasing decisions in the future. Not algorithms. Not upselling or cross-selling. If anything, upselling and cross-selling people’s opinions, helping to evangelize people’s voice such that people can decide what they want.

    At Glossier, we’ve really taken user feedback and asked them for things like what products to make, and where to go in terms of pop-ups or countries. We have fundamentally been able to really change the relationship between brands and customers.

    Make Incredible Things That Stand the Test of Time

    Traditionally, the way that I grew up with beauty products and brands was always sort of from brands speaking top down to customers. They are saying you’re not good enough, saying you don’t know what you want, let us tell you what you want. Really dictatorial. In a way, not giving people enough credit to be able to say, hey, actually I use this deodorant every day. So I am an expert at this deodorant. Seriously, we are all experts on the things that we consume and the things that we use.

    What we’re trying to do is provide the tools, whether it is the physical products that we’ve created over the last four years or the digital conduits that we’re creating now. In the future we hope to help people use their voice and say, hey, how can I help someone else talk about what they’ve learned about beauty and their products and hopefully inspire others.

    We’ve just typically had a pretty simple premise which is making incredible things that can really stand the test of time. That has equaled so far building these very modern essential products that we hope become icons in the same way an iPhone or an Air Jordan became essential products. Hopefully in thirty years time Boy Brow will connect a fifteen year old in the Middle East to a billionaire in Silicon Valley and we’ll be cross generational and cross socio-economic.

    We get very excited about creating quality things that make people want to talk about them. Just period full stop. Over 70 percent of our growth so far has been through owned, earned, peer-to-peer, or organic because people just fundamentally want to share that they enjoyed their Boy Brow.

    For Us It Has Been Quite Analog

    This is something that people are really curious about. I think especially in this age of machine learning for us so far a lot of it has been quite like analog. It’s just been posting on the platforms that we have or in our Slack channel, where we have a lot like several hundred top customers, and saying what’s your dream face wash?

    Sometimes, that’s the way in which we will make product decisions. But typically, it’s really an art and a science. It really depends on the project and how involved we’re going to get versus just sort of say in the office what are we excited about?

    Our Innovation Comes From Staying Connected

    We stay very connected. Every every team at the company, we’re about a third TAC across engineering, digital product, data, and design. Then we have an in-house creative team and we have in-house R&D. I think we’re all very connected to the to the customer. We have all of our Net Promoter Score feedback and comments from every single customer who answers it.

    We are constantly taking into a Slack channel that everyone from me to my assistant to an intern can read every day just to stay connected to the customer. Sometimes it’s a single comment or sometimes it’s a macro trend that we that we hear about the translates into innovation.


  • How Lime Monitors Data From 26,000,000 Trips in Real-Time

    How Lime Monitors Data From 26,000,000 Trips in Real-Time

    Lime monitors data from their scooters and bikes in real-time in order to ensure that all bikes are charged and available to riders. In fact, in 2018 Lime monitored 26 million scooter and bike trips worldwide according to their year-end report. The average ride was just over one mile totaling 28 million miles for the year.

    Not only does Lime monitor data from their scooters they also remotely slow them down depending on where they are in a city, all in real-time.

    Xiuming Chen, Engineering Manager of Infrastructure at Lime, discussed how Lime uses AWS and Amazon Kinesis to ingest all of this real-time data:

    Lime Sends Commands to Scooters in Real-Time

    Lime is a company about urban transportation and we provide a green and affordable transportation option for the users. Our scooter is connected to our servers to ensure a higher quality of service. We need to send commands to scooters in almost real-time. Maintaining hundreds of thousands of concurrent connections is a huge engineering challenge and that number is only growing.

    Lime Slows Scooters Down Depending on Geolocation

    We collect all kinds of information between these vehicles. For example, GPS, location, velocity battery level, and motor information. Safety is a top priority for Lime. As an example, we have a feature that requires us to slow down vehicles when they enter certain areas of the city. To achieve that we have had to increase the frequency of data collection drastically. We have a team of data scientists and machine learning engineers. The team analyzes this data to help us understand how people use our service.

    On-Demand “Juicers” Use App to Collect Scooters

    Normally we see spikes from 11 a.m. to 4 p.m., depending on where you are, but sometimes we also notice a very interesting spike at 9:00 p.m. So we have a network of on-demand workers that charge our scooters. We call them Juicers. Every night at 9:00 p.m. we start to allow Juicers to collect scooters. All of them open the app at the same time which causes the traffic to flatten our servers and causes a traffic spike. In the past, the traffic came directly into a relational database and our service become slower and unusable.

    Amazon Kinesis Ingests Real-Times Scooter Data

    We started to use Amazon Kinesis to ingest real-time data coming from our vehicles. The speed of the growth of this industry is incredible. Scalability is one critical issue we have to deal with and we can let Kinesis do the heavy lifting behind the scene. We can spend the time to work on some more important features that users really need.


  • New Instagram Feature Will Tell Brands What Products Have Been Bookmarked by Customers

    New Instagram Feature Will Tell Brands What Products Have Been Bookmarked by Customers

    Instagram is set to start developing analytics tools that will inform companies what products are being bookmarked by users. The information can help brands in their ad targeting campaigns.

    Instagram formed a team in 2017 to transform the app into a conduit for online shopping. With that goal in mind, the team launched a new tool last month that allowed users to bookmark products that captured their interest. Now, Instagram is working on creating a tool that will tell brands which of their products are being saved.

    The company is reportedly planning to release this feature in early 2019.

    Layla Amjadi, Instagram’s product manager, explained to CNBC how challenging it is to maintain all the products that have interested users on different sites. She added that this is a problem they are excited about solving.

    Instagram’s bookmarking feature could be used for advertising purposes in the future, with users seeing more ads about items they have specifically saved. But Facebook, Instagram’s mother company, does not have the necessary tools for this yet. It’s also not offering any similar feature at the moment. However, companies should consider the analytics tools Instagram is creating as the first step to this.

    The platform looks at bookmarking as a “reconsideration problem” where consumers like an item but are not yet making a purchase due to several factors. For instance, they may not have the money for it yet or they’re waiting for a particular style or color. Amjadi believes that with their bookmarking tool, the company can help users reconsider their choices at the right time.

    At the moment, Instagram seems to be more focused on ensuring that they’re “nailing the consumer experience” of the app’s shopping element. Amjadi revealed that the company wants its users to feel like they’re window shopping. It’s an experience that she believes people crave, which is why they’re trying to build a “personalized mall within Instagram.” It’s also a good way for consumers and brands to establish a fruitful relationship.

    [Featured image via Pixabay]

  • Lands’ End CEO: If You Are Not on Amazon You Are Not Relevant

    Lands’ End CEO: If You Are Not on Amazon You Are Not Relevant

    “For us, our partnership with Amazon was all about new customer acquisition,” says Lands’ End CEO Jerome Griffith. “If you look at searches online, more people go to Amazon to search for clothing than anyplace. If you are not there you are not relevant.”

    Jerome Griffith, CEO of Lands’ End, discussed the recent turnaround of Lands’ End and the reasons for it on Fox Business:

    We Are Doing Well Because We Went Back to Basics

    We’ve had six quarters of sales increases and five straight quarters of EBITDA increases. The company is on a good track right now. We are doing well because we went back to basics at Lands’ End and made Lands’ End what Lands’ End was meant to be.

    We Veered Away From Who the Customer Was

    The company has a very loyal consumer base. In fact, the conversion rates online are some of the best in the industry. That means the customers like what we give them. What happened over the years is we sort of veered away from who the customer was. We seemed to be saying we want a different customer. Now we don’t. We know who our customer is and we want them.

    If You Are Not on Amazon You Are Not Relevant

    For us, our partnership with Amazon was all about new customer acquisition. If you look at searches online, more people go to Amazon to search for clothing than anyplace. If you are not there you are not relevant.

    If Tariffs Come We Will Weather the Storm

    Right now we are extremely well diversified, we don’t have one country that we are over-penetrated. So even if tariffs come into effect I think we will probably weather the storm. This company is really focusing on our business fundamentals, top line growth, bottom line growth. Outside of that I can’t affect what the market does on a day in and day out basis. I tell the guys here worry about what you can affect, not what you can’t.


  • Former Macy’s CEO: This Country is Way Over-Stored Because of the Shift to Online

    Former Macy’s CEO: This Country is Way Over-Stored Because of the Shift to Online

    Consumers have now shifted up to 11 percent of their shopping online and this means that the US needs to get rid of 11 percent of their physical stores, according to former Macy’s CEO Terry Lundgren. He says that overall the consumer is healthy and spending but that doesn’t mean that physical stores shouldn’t close to match supply and demand.

    Terry Lundgren, former Macy’s CEO, discussed the health of the economy and the need to close more physical stores on CNBC:

    The Consumer is Healthy and Spending

    If you just look at all of the numbers week after week you’d have to say that the consumer is in very good shape, as good a shape as I’ve seen this consumer. Obviously, GDP is driven by consumption and the numbers are good. You’ve watched retailer after retailer putting up really good numbers, top, and bottom line. They’re even raising earnings and guidance in some cases, and getting no credit for that by the way in most cases for their stock price. I think that has nothing to do with how the consumer is responding.

    I think the consumer is healthy. I think the consumer is spending. I think the stores are busy. More consumers are shopping both online and in-store and I think that’s really good for business because they spend more when they’re in a physical store than they do when they do it when they’re online. We’re set up for a very decent finish to the year.

    This Country is Way Over-Stored

    There has been an oversupply of physical retail stores in this country, and it’s this country by the way. This country is way over-stored. We’re at 23.2 square feet per human being in the United States versus 16 in Canada and 4.8 in the UK and then they get smaller from there. We’re just way over-stored, so there has to be a contraction. I can tell you in the case of Macy’s two years ago they’ve done this and closed 20 percent of their stores.

    That’s what has to happen because of this shift to online that has occurred, which has been the reality. It’s still only about 10 or 11 percent of all retail sales by the way, but it is growing. You have to get rid of 10 or 11 percent of the physical stores just because of that and that hasn’t happened. So the answer is no we’re not there yet but when that does happen over time, supply and demand is back, that’s when you’ll see the physical stores begin to grow again.

  • Groupon CEO: New Plan ‘Moving Us Away From Email Deals’

    Groupon CEO: New Plan ‘Moving Us Away From Email Deals’

    Groupon announced a business model transformation that moves them away from email and daily deals. Groupon wants their website to be a place for consumers to find great deals and information and also be a utility for merchants to use every day to grow their businesses, says Groupon CEO Rich Williams.

    Groupon is utilized by customers who receive email deals around four or five times a year and Williams sees a huge opportunity to transform Groupon by getting customers to view the site as a deal and lifestyle platform, potentially increasing usage to four or five times a week.

    Rich Williams, Groupon CEO, discussed Groupon’s transformation plans with Jim Cramer on CNBC:

    Groupon Announces a Business Model Transformation

    The core of our plan is based on our marketplace model and concept. That’s moving us away from email and daily deals really to being a utility for consumers and merchants to use every single day to grow their businesses, in the case of merchants. In the case of consumers, a place where they trust when they’re hungry, when they’re bored, when they just want something to do on the weekend with their kids, we’re where they’re going to find the best prices, the best deals, and also the best selection and inventory of those transactable offers local markets.

    I think people have a very narrow perspective of what a turnaround is. Most of that it’s like hey we need to cut some cost or we need to just tweak our product around the edges. When I say it’s a transformation, I think we have a good business today, we’re trying to build an amazing business. We have a good product today, we’re trying to build an amazing product. We’ve got to transform how we work the products we deliver to our customers, really fundamentally change how consumers think about us every day. That’s more than your typical turnaround has to attack and the good news is we’re well on our way.

    Still a Huge Opportunity in Local

    Local is a huge space and it’s a space that got a late start if you think about the online and mobile revolution that we’ve gone through over the last 15 or 20 years. Products started first with folks like Amazon in the late 90s. It wasn’t really until folks like Groupon and Yelp came into the mix late into the 2000s where you started to really get people to push. For sure locals late and it is a challenging space. I would say we’re producing billions of dollars of value coming out of the local space. We’ve grown our inventory and our relationships with small businesses by 60 percent over the last three years. We’re making headway and we see that as a massive prize that’s worth fighting for and we like our position in the market.

    People use us four or five times a year currently. Our opportunity in local where you shop most of the time is four or five times a week. That’s what we’re building toward and those are the metrics to look at long-term where we have a lot of customers buying more frequently in a profitable way. I think we’re we’re wildly undervalued. We have strong free cash flow and we produce a lot of adjusted EBITDA that’s not reflected in our share price today and just shows that we have a lot of opportunity to grow that for folks over time.

  • Amazon Reportedly Prepping to Go Cashierless at Whole Foods

    Amazon Reportedly Prepping to Go Cashierless at Whole Foods

    According to the Wall Street Journal Amazon is testing larger format stores with its Amazon Go cashierless technology as a prelude to a Whole Foods rollout. The WSJ appeared to have spoken with several insiders. “It is unclear whether Amazon intends to use the technology for Whole Foods, although that is the most likely application if executives can make it work, according to the people.” There are predictions by some experts and entrepreneurs that virtually every physical retail store will be checkout free within 5-10 years.

    Walter Robb, former Whole Foods co-CEO, discussed the possibility of Amazon adding its cashierless technology to Whole Foods in an interview on CNBC:

    Amazon May Go Cashierless at Whole Foods

    I just think is part of a larger revolution that’s happening in retail and in food in general. The customers are having more and more options. Amazon Go, which is now up to 13 stores already has this deployed in a smaller store format. The application of this to a larger selection of products, most Whole Foods stores have about 35,000 units, is very exciting and very interesting.

    I think we’re just seeing this massive wave of disruption and innovation in retail in general. What this does is, if you call the grocery business about $2 trillion in the US plus or minus, what you’re seeing is all these new ways in which the customer can get their food. This is part of that choice. I think one of the things that people miss about the Amazon Whole Foods merger is the fact that physical retail really matters. What this does is say, okay we’re going to try to make the physical experience a little more streamlined for people so it contrasts with the online experience. I think you just see this bevy of choices the customers never had and we couldn’t even imagine five years ago.

    Whole Foods and Amazon Culture Clash Smoothing Out

    It’s still early but I think Amazon and Whole Foods certainly have different cultures and different styles, but I think that Amazon has very smart and capable people and I think the cultures are beginning to find their way, both their work processes. If you think about what we at Whole Foods gained from Amazon, we got tremendous first best-in-class technology and data capabilities, the digitization of Whole Foods, was significantly accelerated.

    I think for Amazon they got a great brand in fresh foods which they’d struggle up to that point. They got the knowledge of the customer in the physical stores versus just the digital world and they got proximity to about 85% of the US population. It was a real win-win-win combination. People forget that food is probably the largest sector in the economy. This is a very significant deal that happened and I think a proxy for the fact of how business and commerce in general are evolving so quickly.

  • Alibaba CEO: On-Demand Delivery to Power the Future of Retail

    Alibaba CEO: On-Demand Delivery to Power the Future of Retail

    On-demand is an infrastructure for the future of retail says Alibaba CEO, Daniel Zhang. He envisions a world where virtually every product, even pharmaceuticals, will be available to be delivered on-demand 24-hours a day to customers.

    Daniel Zhang, Alibaba CEO, discussed the future of retail on CNBC International:

    On-Demand Delivery to Power the Future of Retail

    On-demand delivery is an infrastructure not only for the food delivery business. This is also an infrastructure for the future of retail. In terms of food delivery, I think today more and more young people need these services and they either don’t have time to cook or they simply don’t don’t cook so the people need this food delivery.

    When we look at this on-demand delivery network this also can serve many other product categories. For example, people can order some medicine from some pharmacies at night if they catch a cold. This could be an infrastructure for the future of integrated digital business.

    Every Business Will be Powered by Cloud

    Cloud computing is our long-term strategy and we strongly believe that every business in the future will be powered by cloud. We are very happy to build this crowd infrastructure in the new digital era and support all the business to go digital. I think cloud will be the main business of Alibaba in the future.

    Voice is the Next Entry Point of the Internet

    We believe that voice is the next entry point of the Internet. If you look at the history of the Internet we have the PC times and people got into the internet by clicking. Then you have the mobile internet where people go to the internet by scrolling the screen. Now it comes to the voice age where people can go to the virtual world by our voice.

    That’s why we started to work on Tmall Genie and we strongly believe this could be an entry point in the living room when people want to go to the virtual world. This is also how people not only enjoy the services by the voice but also can monitor the equipment and the facilities in the home.

    About Tmall Genie

  • How Will New USMCA Trade Agreement Affect Small Business?

    How Will New USMCA Trade Agreement Affect Small Business?

    The United States, Mexico, and Canada finally wrapped up months of negotiations and finalized a new trade deal a few hours short of its Oct. 1 deadline. The US Congress still has to approve the deal but all signs point to its ratification, with the USMCA set to take effect by January 1, 2020. But how will this new agreement affect small businesses?

    Key Changes Between USMCA and NAFTA

    Taking away all the comparisons being made about NAFTA and the USMCA, the bottom line is that the new trade agreement does have several key changes. The first one deals with the automobile industry. Under the USMCA, 75 percent of a vehicle’s content should come from North America in order to avoid tariffs. This will cut down on the number of parts being imported from Asia. The agreement also states that by 2023, 40 to 45 percent of production should be made by workers who are receiving an average of $16 or more an hour. That hourly wage is definitely higher than conventional salary levels in Mexico.

    There are also a number of vital agricultural concessions in the new deal. For instance, Canada will be giving American dairy producers access to 3.6 percent of its market. This change could potentially be worth around $70 million in trade. In return, the US will also give its neighbor increased access to its agricultural market, including peanuts and sugar and all its related products.

    The USMCA also introduces a sunset clause. According to this, the countries involved will renew the agreement every 16 years.

    How the New Agreement Will Affect Small Businesses and eCommerce

    Online retailers and small American businesses will be affected by the deal’s enhanced trade policies. One change that the three countries have agreed on is the increase in their “de minimis.” This refers to the level at which imported products are exempted from taxes, customs documentation, and duty collection.   

    Under the USMCA, Mexico will be doubling its de minimis from $50 to $100 and Canada from C$20 to C$40. The U.S’ threshold remains the same. This means Canadian consumers won’t have to pay duty for cross-border online orders that are less than C$150 while Mexican customers will enjoy duty-free online orders for products $117 or lower.

    A fact sheet provided by the Office of the U.S Trade Representative shows that the new agreement will also make the processing of shipment orders across the three states go faster, allowing small and medium-sized businesses to engage in more cross-border trading.

    SMEs usually don’t have the resources to pay for customs taxes and duties, but they shoulder the compliance costs that low de minimis have on low-value shipments. The policy changes will give SMEs and new traders to Canadian and Mexican markets the opportunity to reach more customers at lower costs. Express delivery carriers will also benefit since they carry the bulk of low-value shipments.

    Groups like the National Retail Federation are supportive of the raised de minimis threshold as it can improve sales across the borders. But eBay says that the USMCA’s customs provisions are not enough. It claims that it could lead to confusion among small businesses since express and postal shipments will be treated differently and there’ll be different collection rules based on the value levels.

    [Featured image via calendar.in.gov]

  • Amazon Makes a Serious Bid for Regional Sports Networks

    Amazon Makes a Serious Bid for Regional Sports Networks

    Despite Jeff Bezos’ recent admission that Amazon will eventually fail, the company plans to stave off its demise by investing in as many markets as possible. Aside from being the world’s largest eCommerce enterprise, Amazon also has its tentacles in sectors like on-demand cloud computing, pharmaceuticals, and even more recently, banking. Now it wants to venture into sports broadcasting. The retail giant has reportedly filed a bid to acquire the 22 sports television networks that Disney is offloading. The move is seen as Amazon’s attempt to further develop its live video offerings.

    CNBC reported several companies have placed bids for those sports networks, which were once under 21st Century Fox. Aside from Amazon, Apollo Global Management, the Sinclair Broadcast Group, KKR, Tegna, and The Blackstone Group also made offers.

    Surprisingly, New Fox was not among the first-round bidders. The company was founded after Disney shelled out $71.3 billion to acquire 21st Century Fox’s assets this year. The sports networks were initially among the assets Disney paid for. These assets included the YES Network, which shows games of the New York Yankees, as well as other channels that broadcast regional games from different professional leagues like the National Basketball Association, the National Hockey League, and Major League Baseball.

    According to reports, the House of Mouse allegedly wanted to partner these networks with their just launched ESPN+. However, the Justice Department ruling required the company to sell the networks before the Fox deal could be completed to avoid antitrust issues.

    New Fox was a strong contender to buy back the channels. Lachlan Murdoch, Fox’s CEO, had previously confirmed that he was keen on getting back the networks, which made the company’s absence in the bidding glaringly conspicuous. However, Fox might submit a bid in the next round, which is scheduled before the end of the year.

    Media companies will be keeping a close eye on Amazon though. The prospect of an additional 22 networks in Amazon’s Prime Video service will boost its live-streaming power and could potentially change the television landscape.

    More importantly, sports programming still has a strong viewership and brings in massive revenue. In fact, it generates the most revenue for the $70 billion television ad industry. The popularity of live sports also means that having major sports leagues like the MLB and NBA on the roster will enhance the value of the Amazon Prime Video service and could compel more people to subscribe.

    Jeff Bezos’ company hasn’t exactly been hiding its interest in incorporating live sports in its streaming offer. Amazon has already closed deals to broadcast Thursday Night Football and 20 of the United Kingdom’s Premier League soccer matches in 2019.

    If Amazon does go into sports broadcasting, tech companies like Apple, Facebook, and Google might also make a move on sporting rights just to remain competitive.

    Acquiring Disney’s sports channels also provides a number of opportunities for Amazon. The eCommerce giant can phase out these cable networks and offer the live games either exclusively to Prime subscribers or as an add-on to the Amazon Channel. It also gives Amazon a larger advertising playground. Moreover, they will have a wider market to showcase all their products and services.

    Amazon has not made any official comments regarding its foray into sports broadcasting. But it’s guaranteed that the traditional media companies and Amazon Prime subscribers will be watching closely to see if the company will emerge victorious.

    [Featured image via Amazon]

  • Amazon is Destined to Fail, Says Company CEO Jeff Bezos

    Amazon is Destined to Fail, Says Company CEO Jeff Bezos

    Amazon will fail. That is the surprising admission that Jeff Bezos made to his employees last week during an all-hands meeting. However, Amazon’s CEO isn’t ready to see that happening anytime soon.

    In a recording that CNBC was privy too, 54-year-old business mogul Bezos said that “Amazon is not too big to fail.” He even made a prediction that his company will inevitably fail after an employee asked about his thoughts on the Sears bankruptcy.

    “Amazon will go bankrupt,” Bezos said. “If you look at large companies, their lifespans tend to be 30-plus years, not a hundred-plus years.”

    It’s a little hard to imagine Amazon going under, especially when you consider that it’s valued at almost $3 trillion. However, retail history is against the company. One investor posited that all retailers would eventually go bankrupt. And while certain companies become popular, they would eventually fail to adapt, causing the business to decline and fold. Retailers that have been able to adjust and change with the times are considered exceptions.

    Amazon has so far shown its adaptability. It has given consumers what they wanted by effectively utilizing logistics and technology. But as it exceeds its revenue threshold, it will have a harder time finding alternative profit sources. At this point, there aren’t enough people or subscribers left to double their Prime membership. It has to find other avenues that it can bring online instead, like grocery or banking.

    Don’t expect Bezos to throw in the towel anytime soon, though. The investor said that Amazon’s goal now is to put off that failure for as long as possible by focusing on the consumers. According to Bezos, if the company starts to “focus on ourselves, instead of focusing on our customers, that will be the beginning of the end.”

    But customer focus is the least of Amazon’s worries, as the company is renowned for their obsession with keeping their clients happy. However, possible antitrust violations and government regulations are fast becoming a concern for Amazon.

    Bezos understands this but acknowledges that with Amazon’s size, it’s reasonable to expect that it will be closely scrutinized.

    Despite the scrutiny, Amazon’s expansion still continues. The company recently announced the two new locations it has chosen for secondary headquarters. The new “H2s,” as people have dubbed it, will be built in Queens, NY, and in Arlington, VA, with Amazon expected to hire about 50,000 employees.

    [Featured image via YouTube]

  • Booster Brings On-Demand Business Model to Gasoline

    Booster Brings On-Demand Business Model to Gasoline

    Imagine just clicking a button on an app and having your cars gas tank filled while you are working at the office. That’s what Booster Fuels is currently doing. Booster has brought the on-demand business model to fuel and it’s extremely popular in its launch markets of SF Bay, San Diego, and Dallas-Fort Worth areas. Booster Fuels co-founder and CEO Frank Maycroft says that they are selling over $180,000 per day in just those three markets and have plans to expand nationwide.

    Frank Maycroft, CEO and co-founder of Booster Fuels, talked about the companies business model and technology on CNBC:

    Push a Button for Same-Day Free Delivery Gasoline

    Amazon set a new expectation for retail. People want to push a button and get same-day free delivery. What we are able to do now is the same thing for gasoline. When you think about a gas station it hasn’t changed much in 50 years. The concept is really taking the old-world industry and leveraging mobile technology, machine learning technology to allow us to deliver gas to people without any of the inconvenience.

    We are the only company quietly roaming through parking lots looking for cars. The truck that does that has to fit within a single parking spot, has to maneuver as well as a small car, has to be connected to the cloud and communicating with all of the other mobile distributed gas stations in the Booster fleet.

    A Million Deliveries and $180,000 a Day in Revenue

    We’ve done more than a million deliveries company-wide and we will do about $180,000 of revenue in a single day. Anybody can make it so that you can push a button and get gas, but doing that in a way that doesn’t cost more than the gas station is incredibly hard. We didn’t want to have to build a subscription service. We didn’t want to have to charge fees. Our belief is service everyone by charging the same price and focus on where cars go all the time, parking lots.

    To really be inventive today you have to start from scratch with the context of what would this have looked like if you started it in the 21st Century? It’s hardware with embedded systems with software that’s communicating to the cloud, it’s procurement of fuel, it’s pricing to customers. When it all comes together that’s where the magic is.

    People Spend More on Gasoline Than They Do For All of Ecommerce.

    We like to be realists that when you look out your window there are gas-powered vehicles and that’s going to be here for a very long time. Let’s make them 3-5 percent better by improving the supply chain, reducing emissions, and reducing miles traveled.

    People spend more on gasoline than they do for all of ecommerce. People spend almost as much on gasoline as they do on groceries as a category. At the same time, we do look at alternative energy solutions. Nothing stops us from doing the same service for electric vehicles or other alternatives. It’s all based on the same technology investment, software, routing, logistics, that works for fuel.

    Nine out of ten Americans still drive to work and are either going to or coming from suburbs. Imagine ten years from now not having to think about gasoline or energy in general or things in general just getting to you where it’s most convenient for us to deliver to, most convenient for you to get it, and most cost-effective for the entire ecosystem. I think that is the way that the world is moving.

    How Booster Works:

  • Nike Makes the Integration of Digital and Physical Retail a Reality

    Nike Makes the Integration of Digital and Physical Retail a Reality

    Nike has created an amazing store in New York City that truly integrates the digital experience with physical retail. The worlds of physical and digital are not really separated for consumers the way we may have thought says Heidi O’Neil, the President Nike Direct. Clearly, brick and mortar retail is not dead, it’s just changing and Nike is showing the world how it can be done.

    Heidi O’Neil, President of Nike Direct and Sean Madden, Senior Director of Product at Nike Direct were interviewed about Nike’s New NYC technologically enhanced flagship store by Katherine Schwab of Fast Company. You can watch the full video below:

    Physical and Digital Together Create an Incredible Consumer Experience

    “It’s interesting with all of the medium crests around the death of retail, what we found, at least with our Nike consumers, is over 80 percent of consumers actually want a physical experience as part of their shopping experience,” says Heidi O’Neil, President of Nike Direct. “The worlds of physical and digital are not really separated for consumers the way we may have thought about it when we were thinking about the death of retail. In fact, they can really support each other to make an incredible consumer experience.”

    Get Every Item on a Mannequin Head-To-Toe Digitally

    “When you come in you’ll be welcome to Nike New York,” explained Sean Madden, Senior Director of Product, Nike Direct. “On the smartphone screen is what we call Retail Home. We found based on a lot of research that consumers really love mannequins, but they get really frustrated when they can’t find the product that’s on the mannequin. Is it in your size? Is it in your color?

    “We’ve built a system where the consumer can simply scan a QR code and they’ll get every item that a mannequin is dressed in from head-to-toe digitally,” said Madden. “We’ve also enabled consumers to build a virtual Try-On List. They can then choose their size and have it sent right to their fitting room.”

    Smart Fitting Rooms Offer Lighting Options

    “Not only will the product will be waiting for you in the fitting room we’ve also introduced the ability for you to customize the look with lighting so you can see how the product looks on you and will perform in different lighting conditions,” he said. “We want consumers to understand how the product will look in different conditions, especially the New Yorker who is going from their house to sport to work to life and they want a product that can flex with them. They also take a lot of selfies in fitting rooms so good light and an interesting room really helps with that.”

    Data Powers the New Nike Speed Shop

    “We use data to inform the assortment with New Yorkers favorites in the Speed Shop,” said O’Neil. “Then what we’re also able to do from a data perspective is we’re able to take all the selling information and all the data from what’s happening in the five other floors of the store to have a trendy now experience in the Speed Shop. So as a New Yorker you don’t have to spend half the day here, a couple hours there, you can just go and say I’m getting the absolute best of this store curated for me and refreshed in the day, in the hour.”

  • Instagram Rolls Out New ‘Shopping Collection’ Feature

    Instagram Rolls Out New ‘Shopping Collection’ Feature

    Instagram has just unveiled three new functions guaranteed to please both retailers and shoppers this holiday season.

    The photo and video sharing platform just announced three ways that consumers can find new products, buy from their favorite brands, and even keep track of all their purchases. These new features will also go a long way in helping online retailers push their products.

    According to the Facebook-owned company, users can now build a “shopping collection” and save to it. They will also be able to shop on a company’s business profile as well as on feed videos.

    Shopping Collection

    Shoppers who have come across an item that captured their interest in their Feed or on Stories can now save it to their Shopping collection. To do this, they just tap on the product tag and then tap on the Save icon. It’s a fast way of making a wish list and storing gift ideas in preparation for the holidays.

    Shop on Business Profiles

    Instagram announced that it’s also working on revamping the Shop tab found on business profiles. The new design will reportedly allow retailers to quickly showcase all their products. Users who visit a brand’s profile can tap on the Shop button and see the items, along with key information like the item’s name, the post showing the item, and the price. It’s a quick way to browse a brand’s best items in one place.

    Shop in Video Feeds

    Online businesses will now have another reason to use video marketing on Instagram. The platform’s new feature will let the consumer learn more about a brand’s featured product. If a video on their Feed catches their eye, they can tap on the shopping tag to find the products being featured by the brand and get more information.

    The launch comes on the heels of Instagram’s introduction of its product stickers last September. The social channel also launched a shopping segment in Explore, a space dedicated to brands that are either new or the ones the account holder is following.

    Instagram is certainly working hard to capture an even larger slice of the sales pie, especially with the looming holiday shopping season. These new features make it easier for retailers to show shoppers what they have to offer while also helping customers save their picks.

    [Featured image via Pixabay]

  • WW is Weight Watchers Reimagined as a Technology Experience Company

    WW is Weight Watchers Reimagined as a Technology Experience Company

    The CEO of WW (formerly Weight Watchers) described the company as a ‘technology experience company’ with an incredible human-centric overlay. In September 2018 Weight Watchers announced their rebranding to WW in order to make it clear that they are digitally relevant and focused on health and wellness, not just losing weight.

    Mindy Grossman, CEO of WW, recently discussed the companies technological and brand transformation on Bloomberg (video):

    We Truly Are a Technology Experience Company

    What people don’t understand is that we truly are a technology experience company with this incredible human-centric overlay. If you look at our 4.2 million members, they are all engaged with the assets we have in our app. That’s nutrition, activity, mindfulness with the integration of HeadSpace, our new rewards program, and very important is our digital community which is so powerful.

    What we have said is our goal especially with this move as the undisputed leader in weight loss to now wanting to become everyone’s partner in wellness. If you have Amazon for shopping, Netflix for entertainment, Spotify for music you need WW as your wellness partner. If you look at just what the tech and product teams have accomplished this year in building a true health and wellness ecosystem that people can have with them 24 hours a day, it’s been very powerful.

    WW Focusing on Technology Integration

    We just moved into our new offices in San Fransisco which really reflects who we are as a tech and product team. There are so many avenues of work that are happening right now. Again, if you just look at the last year. We launched FreeStyle which is the most efficacious program in the company’s history for eating. We launched FitPoints 2.0 which took the science similar to what we do in nutrition and used it for customized activities. We are Aaptiv audio fitness within our app and we also integrated Headspace for content.

    We are very excited about our rewards program which has been in the works for a year. It doesn’t reward you for spending money, it rewards you for what you do on behalf of your health and nutrition. We are already seeing an increase of 20 percent of nutrition tracking and 80 percent of activity tracking.

    Digital Community is the Heart and Soul of WW

    Then Connect Communities just launched in Canada and is going to be rolling out to the rest of the world and that’s for people to be able to find and inform. We have a whole universe of activations that not only will be able to happen between now and the end of the year but also into 2019 when we really do the big brand relaunch.

  • Zeus Living CEO on How the Startup is Reimagining Housing

    Zeus Living CEO on How the Startup is Reimagining Housing

    The Zeus Living online platform is a new take on the $12 billion corporate housing industry, leasing unfurnished, privately-owned homes and convert them into ‘expertly appointed, convenient, and full-service corporate housing units’ for extended stay travelers. It feels like an Airbnb for extended stays, whether it’s for business relocation or simply a new ‘lighter’ way to live.

    Zeus describes it this way:

    There’s a better way to live and own. We’re using technology, data, and a human touch to build a new light-living experience for residents and homeowners everywhere.

    The service is currently in 3 cities, San Francisco, Los Angeles, and Washington D.C. Zeus is funded by Initalized Capital, a venture capital fund co-founded by Reddit co-founder Alexis Ohanian.

    Kulveer Taggar of Zeus Living discussed the startup on CNBC:

    Focusing on Digital Native Millennials

    We are noticing digital native millennials, they want to be a bit more asset light, they want more flexibility, and they want more mobility. So we are providing them a rental solution where they don’t have to sign up for a 12-month lease, they don’t have to sign up for an unfurnished place, and everything is tech-enabled and conveniently set up for them.

    There are two facets to our business. The way we get our homes is we are positioned as a property manager for homeowners. The idea is we provide managed ownership. You get all of the benefits of owning a home without the headaches of managing a property. We will sign a two-year lease, then we will furnish the home and then market them to other people to live in. The homes come pretty beautifully designed so the expectation is that you probably don’t want to do a ton of redecorating.

    Zeus is an Alternative to Extended Stay Hotels

    Since we have actually started the business the rental market has softened by about 15 percent in the San Francisco Bay area, which is where we started. What we found is that as prices actually come down the amount we pay to the homeowners reduces as well. It’s on us to do the math as to what we think the market is going to do and then in the price that we are offering homeowners we factor all of those things in. We have a lot of people and businesses that use us for relocations and we are actually a lot more affordable than hotels, extended stay hotels, or traditional corporate housing.

  • UNCS CEO: It’s an Amazing Time To Be a Consumer… Every Day is Black Friday

    UNCS CEO: It’s an Amazing Time To Be a Consumer… Every Day is Black Friday

    The CEO of United National Consumer Suppliers, Brett Rose, says that it’s an amazing time to be a consumer because every day is Black Friday. Rose predicts that this is going to possibly be the biggest Q4 in our history.

    Brett Rose, CEO of United National Consumer Suppliers, discussed Amazon and ecommerce in an interview on Fox Business:

    Amazon Has Huge Competitive Advantage

    All things considered, consumers want free shipping, not quick shipping. However, if all levels are equal with Amazon, Target, and Walmart, the one competitive advantage that Amazon has, that Target and Walmart can’t, is that Amazon has millions of these third-party resellers constantly filling their coffers with products. Target and Walmart are limited to what they have in stock that’s ready to go.

    There is no denying that Walmart has made some massive strides. But to come after Amazon is hefty. Like I said Amazon has a constant supply of products where their not just limited to what they’re curating on their own. They’re limitless in regards to what everybody is sending to them to go right to the consumer.

    Every Day is Black Friday

    Interesting times with tariffs. If you read everything that came out Chinese imports are up 15 percent over the same time last year. They’ve all front-loaded in preparations for the President’s tariffs which are now in full effect. All of these retailers pushed up orders in what might have otherwise taken months. It’s yet to be determined, but consumers still need goods. There’s always going to be a need, the price is just going to fluctuate.

    If numbers are indicative, everything these retailers are curating and everything the street is saying, it’s going to be one of if not the biggest Q4 in our history. Even if you look at Black Friday announcements, Black Friday is out already. Amazon has released their Black Friday items. BlackFriday.com, Macy’s, went live the other day with their sales. Retailers are vamping up to stay competitive. You go online now and you can figure out what retailers are selling for Black Friday.

    It’s an amazing time to be a consumer. Every day is Black Friday. Right now it really is. They’ve already released what the doorbusters are going to be.

    Still a Major Value in Having a Physical Presence

    There’s always going to be the consumer that likes to go to the store, likes to feel it, touch it, get the treasure hunt, but now with real-time shipping, free shipping, real-time inventory, it’s a great time to be a consumer. It’s certainly competitive. While Amazon is making strides they are still going after brick & mortar. Buying Whole Foods and some of the other retailers they are looking at, says there is still a major value in having that physical presence.

  • Etsy CEO: Machine Learning is Opening Up a Whole New Opportunity

    Etsy CEO: Machine Learning is Opening Up a Whole New Opportunity

    Etsy CEO Josh Silverman says that “machine learning is opening up a whole new opportunity” for the company to organize 50 million items into a discovery platform that makes buying an enjoyable experience and also is profitable for sellers.

    Josh Silverman, CEO of Etsy, recently talked about their much-improved business and why it is working so well with Jim Cramer on CNBC:

    Our Mission is Keeping Commerce Human

    Our mission is keeping commerce human. It’s really about in a world where automation is changing the nature of work and we’re all buying more and more commoditized things from the same few fulfillment centers. Allowing someone to harness their creative energy and turn that creativity into a business and then connect with someone in the other part of the country or in another part of the world, that’s really special. We think there’s an ever-increasing need for that in this world.

    It’s about value. We’ve been really focused on delivering more value for our makers. Etsy really is a platform that brings buyers to sellers and that’s very valuable. We raised our commission from 3.5 to 5 percent commission which was I think is fair value for our sellers, particularly because we’re reinvesting 80 percent of that into the growth of the platform.

    Free shipping is pretty much table stakes today. Yet only about 20 percent of items have free shipping. About half of all the items on Etsy buyers say have shipping prices that are too high and yet we grew GMS at 20 percent last quarter.

    Machine Learning is Opening Up a Whole New Opportunity

    Machine learning is opening up a whole new opportunity for us to take 50 million items from two million makers and make sense of that for people. We have 37 million active buyers now and many of them come just for discovery, just to see what they can find, and that is exactly the right thing for someone out there. Our job is to create that love connection. Etsy over the past 14 years, with a large team effort, has I think done a great job.

    One thing I want to emphasize is the quality and the craftsmanship with so many of the products on Etsy. That’s something that has been such a delight for me. People like Kringle Workshops that make these incredible products. What we have been doing a better job and need to continue to do a better job of really surfacing the beautiful artisanally crafted products that are available at a really fair price. You’re not having to pay for warehousing, you’re not having to pay for all the other things that mass-produce things have to pay for, you’re buying directly from the person who made it. So it can be both beautiful, handcrafted, and well priced.

    There are 2 million sellers, 87 percent of them are women, over 90 percent are working from home or are businesses of one, who can create a global business from their garage or their living room. Etsy does provide a real sense of community for them and that’s really powerful.

    Amazon May Open New HQ in Queens Near Etsy

    We feel great about our employee value proposition and come what may. Here’s what we have going for us. We think we’ve got the best team, certainly in tech companies on the eastern seaboard. We think ours is the best and we continue to attract great talent. The reason is, first and foremost, our mission is really a meaningful important mission and that matters. Great people want to work in a place with a great mission.

    Second, our technology challenges are interesting. For example, search and using machine learning to make sense of 50 million items that don’t map to a catalog. Third, our culture is really special. We have been a company that’s authentically cared about diversity from the beginning. Over 50 percent of our executive staff are women, we have a balanced board, 50 percent male and female, and 32 percent of our engineers are female, which is twice the industry average. People who care about diversity and inclusion really want to come to work at Etsy. All of that is going for us and we’re happy to compete with whoever we need to.

    Earnings Call Comments by Etsy CEO:

    Active Buyers Grew 17 Percent

    Etsy’s growth accelerated again in the third quarter to nearly 21% on a constant-currency basis. Revenue growth exceeded 41%, fueled by the launch of our new pricing structure, and our adjusted EBITDA margins grew to nearly 23%, while we also increased our investments in the business.

    Active buyers grew 17% to 37 million worldwide. This is the fourth consecutive quarter that GMS has grown faster than active buyers, evidence that we are seeing increased buyer activity on the platform, which is a key proxy for improvement in frequency. We grew the number of active sellers by 8% and GMS per active seller is also increasing.

    Two principal levers contributed to our progress this past quarter. The first is our continued product investment, focused on improving the shopping experience on Etsy. By making it easier to find and buy the great products available for sale on Etsy, we’re doing a better job converting visits into purchases. The second lever was our new pricing structure, which enabled us to ramp up investments in marketing, shipping improvements and customer support.

    Successful Cloud Migration

    We achieved a significant milestone in our cloud migration this quarter, successfully migrating our marketplace, Etsy.com, and our mobile applications to the Google Cloud with minimal disruption to buyers and sellers. This increases our confidence that the migration will be complete by the end of 2019.

    Once fully migrated, we expect to dramatically increase the velocity of experiments and product development to iterate faster and leverage more complex search and machine learning models with the goal of rapidly innovating, improving search and ultimately driving GMS growth.

    In fact, we’re beginning to see some of those benefits today based on the systems we’ve already migrated. I’d like to thank our engineering team for their incredible work to get this – get us to this point.

     

  • Bumble CEO: Launching in India to Further Empower Women

    Bumble CEO: Launching in India to Further Empower Women

    Bumble is launching their app in Inda with the help of its new investor and brand ambassador actress Priyanka Chopra. The actress should help Bumble India get off to a fast start, having already announced it to her 23.6 million followers on Twitter.

    The CEO of Bumble, Whitney Wolfe, also announced Bumble India on Twitter:

    Whitney Wolfe commented on CNN about changes Bumble made in an effort to make them feel more comfortable using the app in India:

    Bumble is a Recalibration of Human Behavior

    I believe that no matter what area of the planet you are trying to enter you have to be so in tune with the customs and the culture. We’ve taken a lot of measures, both in the product and in the go-to-market strategy to really be mindful and to bring something that the girls and women of India would actually want to use.

    In India, in particular, we have deleted first names. Now you use your first initial. We want you to feel safe and secure and have your anonymity and know as a woman that you can really hide behind all these different shields Bumble provides you. So, a first initial for starters, verified photos, and then women make the first move on Bumble. This is a huge thing.

    There were a lot of naysayers at the beginning of Bumble four-plus years ago that this is a gimmick, this is just a way to enter the space. But no, it’s not a gimmick. It’s a recalibration of human behavior and the way we treat each other. This creates safety in and of itself.

    Women Need Empowerment Globally

    I think that women need empowerment globally, it doesn’t matter where it is. The more disempowered the mindset, the culture, wherever that might be. You can even take America, for example, there are different parts of the country that are a bit more archaic in mindset. We had a lot of people challenge us here as well at the beginning of Bumble. You will never survive in the South, or you will never survive in this state or that territory. To be candid, we thrived.

    The more disempowered, the more archaic, the more desire to rise and be equal women truly are at their core. We need to provide that globally. Yes, we need to be really mindful of culture and tradition. But at the end of the day, we aren’t doing anything other than saying we want to encourage empowerment and equality.

    About Bumble

    Bumble is a social network that allows you to feel empowered while you make those connections, whether you’re dating, looking for friends, or growing your professional network. When members of the opposite sex match on Bumble, women are required to make the first move, shifting old-fashioned power dynamics and encouraging equality from the start.

  • Western Union CEO on Amazon Partnership: Buy Globally and Pay Locally

    Western Union CEO on Amazon Partnership: Buy Globally and Pay Locally

    Western Union has partnered with Amazon to white label their cross-border money transfer platform. “Amazon engaged us to use our platform to service their customers in a better way in order to give access to the millions of customers who don’t have an access today to buy online and pay,” said Hikmet Ersek, the CEO of Western Union. “In the future, they will have the capability to buy globally and pay locally.”

    Hikmet Ersek, President, CEO, Western Union, recently discussed the new partnership with Amazon, competition with Zelle and Vinmo, and the overall health of the business:

    Western Union Digital Business is Growing Very Well

    Our digital business is growing very well year over year. We are now in 50 countries with our digital business sending money to over 200 countries. We pretty much cover the world with digital. Our digital growth is very strong. Our retail money transfer business has been stable. In some countries, we have been a little bit slower like in the Middle East, but we had very strong growth in Europe and US outbound business. Our US domestic business has been a little bit slower than we thought. Generally, I would say that we had a very stable solid quarter and we are very excited about the future.

    You Can’t Send Money From Your Mobile

    US to Domestic there has been some competitive environment. Nothing changed like last quarter. We have certain customers that like to pick up cash immediately. Nobody can beat that. You can’t send (cash) money from your mobile. We pay out in cash immediately. There are also competitors like Zelle and Vinmo who have been capturing some market share there with their zero fee environment. That has definitely been US dominated but is only a small part of our business, seven percent of our revenues. We are more focused on the outbound business, global cross-border business. That has been growing very well.

    Western Union is White Labeling Platform to Amazon

    Amazon has engaged us, over the years we have been building a cross-border platform, which is unique. We are moving transactions in 132 currencies globally and we do about 32 transactions every second. We have a network of 550,000 locations. We are reaching out to about 4 billion accounts globally. This is a unique platform where today we serve our customers with this platform.

    Companies like Amazon engaged us to use our platform to service their customers in a better way in order to give access to the millions of customers who don’t have an access today to buy online and pay. In the future, they will have the capability to buy globally and pay locally.

    The Amazon partnership is for us very exciting because now suddenly we are opening our platform to new customer segments, white labeling to other organizations like Amazon. Today, we are serving our existing customers with our branded transactions. In the future, we will be able to serve huge organizations like Amazon, or Amazon will engage us with other organizations, to engage our platform and to use our platform to serve their customers.

    Paying Amazon Has Been a Real Obstacle for Some

    “There are people in the world who want greater access to Amazon’s huge product selection but paying for those purchases has been a real obstacle for many customers,” said Hikmet Ersek, president and CEO of Western Union. “We’re leveraging our money movement platform to make it easier to shop global and pay local. By facilitating the complex foreign exchange and settlement process, we’re opening up more consumer choices and access to online shopping for tens of millions of potential new Amazon customers.”

    Forrester Research estimates that cross-border shopping will make up 20% of e-commerce by 2022, with sales reaching $630 billion. Choice, quality and cost are the main motivations for consumers to shop online from overseas, but there are challenges and concerns about the lack of payment options for consumers who prefer to pay in person or consumers who are not comfortable using online payment methods.

  • Barry Diller on the Internet Revolution: Really Young, Truly Radical, Very Troubled

    Barry Diller on the Internet Revolution: Really Young, Truly Radical, Very Troubled

    Internet pioneer Barry Diller says that the Internet revolution is still really young. He also says that this truly radical revolution is right now a very troubled revolution.

    Barry Diller, Chairman and Senior Executive of IAC and Expedia, Inc., recently reflected on the relative youthfulness of the Internet and areas which are still ripe for entrepreneurs. IAC owns popular dating platforms such as Tinder and Match.

    Below are Barry Diller’s comments made during an interview on Fox Business which you can watch in its entirety below:

    The Internet Revolution is Still Really Young

    The growth is just part of the revolution. People forget that the internet revolution is still really young, only 22 or 23 years. It took 10-15 years just to get up enough bandwidth to actually have rich media being served through it. We are really at the very earliest stage of this.

    Expedia is one of the first companies to kind of colonize travel for the internet 20 years ago. That’s a world where the colonization of all these businesses is just now coming on ‘full line’ where you can do almost everything and almost everything more through digital platforms. So the growth is everywhere.

    Fintech is Just Now Going Mainstream

    Financial technology, Fintech, is just now really getting into very much mainstream. Big companies are being built for this. For us, it’s home services. Being able to the same thing you do when you want a car, being taken someplace rather than drive yourself, where you have an app and with Uber. Home service, which has been one of the most difficult areas to tame.

    It’s the most, essentially, local of everything. It’s where your water heater breaks, your air conditioning doesn’t work, just take it on the emergency or quick service side, and you want help. Now there is an app in Angie Home Services in Home Advisor where literally you do the same thing. You say I need a plumber and it will show you plumbers hovering around, Uberish like service providers, where you will be able to do the full-service of that transaction on your mobile device because it’s there and it’s ready for you.

    It’s Really a Platform

    That is just now at it’s very earliest stages. It’s just one example where the growth runway is infinite. It’s really a platform. The platform takes consumers over here who have needs and service providers over here who provide services and through technology, it makes a perfect match or at least a good match.

    That’s what all of those things are, they are platforms. Once you have a platform then when you say will others be created, well certainly there will be other platforms created, but there won’t be that many because the network effects have to come into play.

    Tinder is Now Moving on the Same Track as Match

    We’ve been involved in Match almost 20 years I think. We bought Match quite early in the cycle. We found that… you know what, that’s a very good idea. We found this little company in Texas called Match.com which we bought. The thing is when you say it’s just now becoming where people get married, we had over a million marriages ten years ago come from Match.com.

    Then the technology moved forward and you have Tinder, which is actually younger in terms of people. People on Match were fairly serious, yes they wanted to date and see what happened on a little one-time date, but they also really wanted relationships. Tinder got younger and earlier stage of pre-relationship, one-time dating or one-time whatever. But now, it is moving on the same track as Match did where real relationships are coming out of Tinder. It’s an alternative to the historic pattern of going to bars or being fixed up. This actually does bring technology into the mix.

    This is a Truly Radical Revolution

    When you are inside of a revolution, which I was just lucky enough in timing to get into in a very early stage, you don’t realize the effects of what is happening around you. This is a truly radical revolution. Right now it is a very troubled revolution which happens at very early stages.

    Part 1 of Barry Diller interview on the Internet Revolution:

    Part 2 of Barry Diller interview on the Internet Revolution: