Amazon Reports Online Sales Are Down While Revenue Is Up

Amazon increased revenue by 7 percent to $121.2 billion in the second quarter, beating analyst expectations and sending the stock soaring 12 percent despite a $2 billion loss. That contrasts with a $7.8 billion profit for the same period last year. The loss was due in part to Amazon’s investment in the electric car company Rivian, whose value has plunged this year. “Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network,” said Amazon CEO Andy Jassy. Continue reading Amazon Reports Online Sales Are Down While Revenue Is Up

Seattle ‘Pay Up’ Legislation Created to Support Gig Workers

Seattle’s City Council has unanimously passed the “Pay Up” bill, designed to improve working conditions and compensation for on-demand gig workers, increasing wages and mileage reimbursement for the region’s app-based labor pool. Beginning in 2023, apps including DoorDash, Grubhub and Uber Eats will be required to pay delivery drivers per-minute and per-mile rates, with the clock ticking the minute the drivers accept an order. Pay Up is the first step in Seattle’s ongoing effort to protect app-based workers, which one councilmember called “one of the fastest growing sectors in our economy.” Continue reading Seattle ‘Pay Up’ Legislation Created to Support Gig Workers

Russia’s Native Tech Star Yandex Collapsing Over Sanctions

Yandex — the giant Russian tech brand involved in everything from search to music streaming and ride-hailing — has been reeling from the effects of economic sanctions and the country’s invasion of Ukraine. Yandex stock, described as “soaring” on its Nasdaq debut in 2011, was in February said to be “in freefall,” having declined to about half of its value. The company has an estimated 67 million users worldwide, including in Michigan, Arizona, Ohio, London and Paris, where partnerships with Uber and Grubhub were followed by forays into robotic food delivery and self-driving cars. Continue reading Russia’s Native Tech Star Yandex Collapsing Over Sanctions

University of Chicago Debuts First U.S. Quantum Accelerator

The University of Chicago and partners launched the first U.S. program to support quantum-tech startups. University of Chicago physicist and molecular engineer professor David Awschalom, who helped create the Duality accelerator, said, “we are at the birth of a new field of technology … at the point where the transistor is being invented.” Chicago is home to three of the eight federally funded quantum research centers founded in 2020. The University of Toronto has also unveiled a program to support quantum-tech startups. Continue reading University of Chicago Debuts First U.S. Quantum Accelerator

China & U.S. Both Stand to Lose in Current Technology Battle

The current U.S.-China tensions over technology may result in both countries being impeded from achieving their targets: China’s aim to build a modern technocratic state and the U.S.’s efforts to continue to build lucrative businesses with China’s huge market. U.S. Internet companies are already barred by China’s Great Firewall, and now the U.S. is targeting Huawei Technologies, ByteDance’s TikTok and Tencent Holdings’ WeChat. Secretary of State Mike Pompeo proposed a “Clean Network” free of Chinese apps and other technology. Continue reading China & U.S. Both Stand to Lose in Current Technology Battle

Pandemic Shutdown Leading to Major Shifts in E-Commerce

When the U.S. shut down in March, people went online to shop. Adobe’s Digital Economy Index reported that U.S. e-commerce skyrocketed 49 percent in April, compared to the baseline period in early March. Some e-commerce companies have become stronger during the shutdown. But buying patterns have been volatile, with the latest uptick sparked by government stimulus checks that were sent out April 11. Many experts believe that consumer habits are changing in ways that will continue beyond the threat of the coronavirus. Continue reading Pandemic Shutdown Leading to Major Shifts in E-Commerce

Online Shopping Spikes, Amazon Hires 100,000 New Workers

As the coronavirus fuels a rise in online sales, Amazon plans to hire 100,000 more workers and raise pay for all employees in the U.S. and Canada by $2 an hour. The company’s starting wage is currently $15 per hour in its U.S. fulfillment centers. In the U.K., wages will rise £2 ($2.45) per hour and approximately €2 ($2.24) an hour in many European Union countries. At end of 2019, Amazon employed almost 800,000 full-time and part-time workers. Other companies are also seeing increased online sales as a result of COVID-19. Continue reading Online Shopping Spikes, Amazon Hires 100,000 New Workers

California Considers Law That Would Reclassify Gig Workers

The California Assembly introduced a law that would require Amazon Flex, Postmates, Uber and other similar companies to treat their gig economy contractors as employees, with the wages and benefits of that classification. The bill, which was approved 53 to 11, comes only a few weeks after Uber’s IPO was met with a brief strike by ride-hail drivers around the world protesting their low pay and contractor status. The bill now heads to the Democratic-controlled state senate where it is likely to be signed into law. Continue reading California Considers Law That Would Reclassify Gig Workers

California Court Changes Test to Determine Status of Workers

The California Supreme Court replaced the existing test for determining whether employees are independent contractors with another, simpler one used in Massachusetts and New Jersey. The former test relied on 10 factors, including the amount of supervision, to assess the company’s control over the worker. The new “ABC” test deems the worker an employee if he does a job that is part of the “usual course” of the company’s business. The ruling could have a profound impact on Uber and others in the so-called gig economy. Continue reading California Court Changes Test to Determine Status of Workers

Siri Creators Introduce Next Generation Digital Assistant Viv

Siri co-founders Dag Kittlaus and Adam Cheyer are getting ready to debut Viv, a new platform and virtual assistant that represents the latest frontier in artificial intelligence. In development for four years, Viv was recently tested by a group of engineers who were able to place an order for several pizzas — without a Google search, phone call or app — and the pizzas were delivered as requested. That success has been repeated with about 50 partners, and will be publicly demonstrated at a major industry event today. Continue reading Siri Creators Introduce Next Generation Digital Assistant Viv

Uber is Bringing its New Meal Delivery Service to 10 U.S. Cities

Ride-hailing service Uber is expanding its new meal delivery service to 10 U.S. cities in the coming weeks. People in Los Angeles, Chicago, New York, Austin, Washington DC, San Francisco, Atlanta, Houston, Seattle and Dallas will be able to order food from dozens of local restaurants through a dedicated UberEats app and have an Uber driver deliver the meal. UberEats will have longer hours of operation than Uber’s existing lunchtime-only food delivery service in these cities. Continue reading Uber is Bringing its New Meal Delivery Service to 10 U.S. Cities

Free Shipping and Speedy Delivery a New Focus for Companies

In shipping news, retailers and tech companies continue to compete for consumers’ attention by offering fast and affordable delivery options. While Amazon, Google and others continue their plans for drone delivery — and companies continue to experiment with one- and two-hour delivery in major cities — recent news has surfaced that Apple is teaming with Postmates to offer same-day delivery of Apple Store items, Walmart is developing a new three-day shipping service, and Amazon is introducing free shipping on thousands of smaller goods. Continue reading Free Shipping and Speedy Delivery a New Focus for Companies

Amazon Expands its Offerings with Takeout & Delivery Service

Amazon is taking on the likes of DeliveryHero, GrubHub and Seamless with its new Takeout & Delivery, the latest service available to those in search of a convenient way to order food from local restaurants. A live version of the service recently launched in Seattle and other cities are expected to be added soon. Amazon’s Takeout & Delivery allows users to charge food orders to their existing Amazon accounts. It follows the success of Amazon’s door-to-door grocery delivery service, Amazon Fresh. Continue reading Amazon Expands its Offerings with Takeout & Delivery Service

Fast Food Giants Follow GrubHub’s Lead with Ordering Apps

Starbucks and McDonalds are working towards implementing mobile ordering and digital payment systems. Besides the pizza industry, most fast food chains have been reluctant to adopt digital ordering systems, while small businesses have been quick to accept GrubHub, which allows customers to order food online or through a smartphone app. Since GrubHub recognizes that fast food chains will likely create their own apps, the company is focused on partnering with independent restaurants. Continue reading Fast Food Giants Follow GrubHub’s Lead with Ordering Apps