The Shed is a startup out of Virginia trying to revive the rental-for-everything business

Reducing consumption by expanding the notion of the rental economy and giving people access to tools and equipment has been something of a startup holy grail for some time.

It’s a model that’s worked famously well for fashion and accessories (just ask investors in Rent the Runway), but has had not had the same resonance for white label goods.

The Shed, out of Richmond, Va., hopes to change that.

Launched by Karen Rodgers O’Neil, a longtime marketing executive, and Daniel Perrone, a serial entrepreneur and technology executive whose previous company, BroadMap, was acquired by Apple; The Shed hopes to take the rental model that Home Depot has turned into a billion dollar business line and take it to the masses.

Unlike Home Depot, The Shed touts its presence in eight categories. Stanley Black & Decker is a marquee early partner and the company’s executives said that others have come on board.

“We don’t buy product,” said Perrone. “We take delivery of all the products and rent them out in the local marketplaces where we do business.”

The only thing the manufacturer provides is the products and some servicing starter kit so that The Shed and its employees can manage and maintain the product.

The Shed founders Karen Rodgers O’Neil and Daniel Perrone. Image Credit: The Shed

Since its launch in April the company has expanded beyond its Richmond, Va. home base to Denver — and will be looking to expand further into Portland, Austin, and San Jose, according to Perrone.

Among the features that the company intends to roll out as it expands is a dynamic pricing capability that will enable manufacturers to wring the most out of their goods when they’re in high demand.

Rodgers O’Neil came up with the concept back in 2012 when she was working as a marketing executive for General Electric out of Boston.  Perrone met Rodgers O’Neil at a networking event in Boston and became convinced that her notion of offering more rental options to encourage a more circular economy and reduce consumption was something that could resonate with consumers.

To be sure, The Shed isn’t the first company to attempt to bring the rental business to a broader array of consumer products in an effort to cut down on consumption. The Los Angeles-based startup Joymode was attempting to do much the same thing. That company sold to an early stage investment firm out of New York.

Joymode’s chief executive, Joe Fernandez spoke about the difficulty of running the business. “Part of the thesis was that by making things available for rental, people would want to do more stuff,” said Fernandez, but what happened was that consumers needed additional reasons to use the company’s service, and there weren’t enough events to drive demand.

LA’s consumer goods rental service, Joymode, sells to the NYC retail investment firm, XRC Labs

By contrast, The Shed isn’t owning any of the inventory, just acting as a broker and managing inventory between local retailers and manufacturers who want to take advantage of the company’s service.

In addition to Stanley Black & Decker, companies like Primus camping equipment have placed their products on The Shed along with Mobility Plus, which added wheelchairs and mobility scooters; and Replacements, the largest china dealer in the country, which is offering a “Party in a Box” for dinner, cocktail or tea parties.

To date, the company has raised $1.75 million from investors and entrepreneurs from the Richmond, Va. area. Now, with 60 manufacturers on board and another 15 to 18 vendors signing up monthly, the company is looking to expand even further.

“I joined with Karen because I saw that this would be a game changer in the rental space,” said Perrone. There are a number of retailers in specific verticals that still don’t transact online, so The Shed becomes their avenue to reach the market, he said.

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Apple opens up — slightly — on Hong Kong’s national security law

After Beijing unilaterally imposed a new national security law on Hong Kong on July 1, many saw the move as an effort by Beijing to crack down on dissent and protests in the semi-autonomous region.

Soon after, a number of tech giants — including Microsoft, Twitter and Google — said they would stop processing requests for user data from Hong Kong authorities, fearing that the requested data could end up in the hands of Beijing.

But Apple was noticeably absent from the list. Instead, Apple said it was “assessing” the new law.

When reached by TechCrunch, Apple did not say how many requests for user data it had received from Hong Kong authorities since the new national security law went into effect. But the company reiterated that it doesn’t receive requests for user content directly from Hong Kong. Instead, it relies on a long-established so-called mutual legal assistance treaty, allowing U.S. authorities to first review requests from foreign governments.

Apple said it stores iCloud data for Hong Kong users in the United States, so any requests by Hong Kong authorities for user content has to be first approved by the Justice Department, and a warrant has to be issued by a U.S. federal judge before the data can be handed over to Hong Kong.

The company said that it received a limited number of non-content requests from Hong Kong related to fraud or stolen devices, and that the number of requests it received from Hong Kong authorities since the introduction of the national security law will be included in an upcoming transparency report.

Hong Kong authorities made 604 requests for device information, 310 requests for financial data, and 10 requests for user account data during 2019.

The report also said that Apple received 5,295 requests from U.S. authorities during the second half of last year for data related to 80,235 devices, a seven-fold increase from the previous six months.

Apple also received 4,095 requests from U.S. authorities for user data stored in iCloud on 31,780 accounts, twice the number of accounts affected during the previous six months.

Most of the requests related to ongoing return and repair fraud investigations, Apple said.

The report said it received 2,522 requests from U.S. authorities to preserve data on 6,741 user accounts, allowing law enforcement to obtain the right legal process to access the data.

Apple also said it received between 0-499 national security requests for non-content data on between 15,500 and 15,999 users or accounts, an increase of 40% on the previous report.

Tech companies are only allowed to report the number of national security requests in ranges, per rules set out by the Justice Department.

The company also published two FBI national security letters, or NSLs, from 2019, which the company petitioned to make public. These letters are subpoenas issued by the FBI with no judicial oversight and often with a gag order preventing the company from disclosing their existence. Since the introduction of the Freedom Act in 2015, the FBI was required to periodically review the gag orders and lift them when they were no longer deemed necessary.

Apple also said it received 54 requests from governments to remove 258 apps from its app store. China filed the vast majority of requests.

US tech giants halt Hong Kong police help

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This Week in Apps: Apple delays mobile ad apocalypse, app review changes, TikTok deal gets complicated

Welcome back to This Week in Apps, the TechCrunch series that recaps the latest OS news, the applications they support and the money that flows through it all.

The app industry is as hot as ever, with a record 204 billion downloads and $120 billion in consumer spending in 2019. People are now spending three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.

In this series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.

This week, a handful of top stories lead our coverage. TikTok deal talks this week got hung up over whether or not TikTok can export the app’s algorithms as part of any acquisition of its U.S. operations by an American firm. Apple also made headlines for delaying the rollout of a potentially disastrous iOS 14 change that’s been panicking the advertising community. It also announced that it will no longer ban apps from pushing out security updates and bug fixes, even when App Review has blocked their app updates over policy non-compliance.

Top Stories

Apple delays the mobile ad apocalypse

Image Credits: Apple

Apple this week announced it would delay a controversial change that would impact how ads are targeted to iOS and iPadOS mobile users. In a move aimed at protecting consumer privacy, Apple was poised to introduce a new, in-app prompt in iOS 14 that would ask users whether they would like to allow targeted ad tracking or not. Because most consumers generally don’t like the stalker-ish nature of digital ads, you know what they’d choose!

The change involves an identifier known as IDFA (Identifier for Advertisers) that allows advertisers to track how well their ad performs, including which channels drove what quality of users. This lets advertisers make better, more informed choices on their digital ad spend. It’s a key part of app marketing today.

Overall, we’re talking about a massive industry being disrupted. According to eMarketer, the U.S. mobile advertising reached $87.3 billion in 2019. Globally, app install ad spend was $57.8 billion in 2019 and was poised to grow to $118 billion in 2022, per AppsFlyer data. And yet, Apple doesn’t really participate here. Instead, it only offers Search Ads in its App Store. But to promote apps, Apple relies on editorial — like curated collections in the App Store and stories about apps on the Today tab. These can help direct traffic to apps, as can outside press, but the most efficient way to acquire users is paid spend on app install ads.

The mobile ad industry built itself up around the IDFA, offering tools focused on making it easier to measure ad performance and optimize ad spend. Apple was ready to wipe that industry out of existence. And marketers, as you can imagine, were panicking. Even calling it an apocalypse.

As an alternative, Apple was offering SKAdNetwork, introduced in 2018. But it lacked a lot of the information marketers rely on, like attribution or information on impressions, creative, remarketing, in-app events, lookback windows, user lifetime value, ROI, retention or cohort analysis.

This photo illustration taken on March 22, 2018 shows apps for Facebook and other social networks on a smartphone in Chennai. (Photo credit: ARUN SANKAR/AFP via Getty Images)

Last week, Facebook spoke up about how serious the change would be to its own business, saying that, in testing, it found that without targeting and personalization, mobile app install campaigns brought in 50% less revenue for publishers. “The impact to Audience Network on iOS 14 may be much more,” the company noted, referencing the ad network that uses Facebook data to target ads on publishers’ websites and apps.

A few days later, Apple announced the change was being put on hold, saying:

We believe technology should protect users’ fundamental right to privacy, and that means giving users tools to understand which apps and websites may be sharing their data with other companies for advertising or advertising measurement purposes, as well as the tools to revoke permission for this tracking. When enabled, a system prompt will give users the ability to allow or reject that tracking on an app-by-app basis. We want to give developers the time they need to make the necessary changes, and as a result, the requirement to use this tracking permission will go into effect early next year.

It’s unclear if Apple plans to respond to any of the industry’s concerns during this delay, or if it’s just given mobile marketers more time to figure out how to proceed in a data-less future. But at the very least, it’s the latter. Apple only announced the change to IDFA at WWDC this year — not enough time for an entire industry to retool itself around SKAdNetwork or implement other workarounds. The bigger question has to do with Apple’s long-term goals? It’s rewriting the rules to give itself a seat at the table, after all.

Apple puts an end to App Store Jail…for bug fixes

Image Credits: TechCrunch

Apple often put iOS users at risk when it blocked developers from publishing their apps to the App Store over policy violations. In some cases, developers have urgently needed to release security patches and other bug fixes that could cause major problems for their users.

As Apple has increasingly begun to crack down on App Store violations, including those that require apps to use Apple Pay for in-app purchases, more developers have been caught in desperate situations. Apple put Basecamp’s new email app on ice almost immediately after it launched, and even temporarily rejected the free WordPress app, because in some web views, users could make their way to a page where they could upgrade to a paid plan:

Heads up on why @WordPressiOS updates have been absent… we were locked by App Store. To be able to ship updates and bug fixes again we had to commit to support in-app purchases for .com plans. I know why this is problematic, open to suggestions. Allow others IAP? New name?

— Matt Mullenweg (@photomatt) August 21, 2020

WordPress’ Matt Mullenweg took to Twitter looking for help as a last alternative, after realizing the company couldn’t even ship its bug fixes until the issue had been resolved. The move caught Apple’s attention, and the situation was addressed. Apple even apologized.

A change to App Review, now live, will give developers caught in similar situations a way to keep pushing out their most critical updates, but not other app improvements. Apple’s plans had been previously announced at WWDC, but the rollout is timely as Apple steps up its policing of the App Store. However, making these rejections less of a potential disaster for developers may also see fewer developers talking publicly about their rejections or running to the press. With the urgency of a critical bug fix to drive them, the everyday rejection may go unnoticed.

Developers in the past had been scared of punitive actions for talking to the press about their troubles. But in the new antitrust era, more have begun to speak up when they feel Apple is unfairly punishing their business. That’s been good for U.S. regulators, at least. Congress has been collecting testimonies from developers that could ultimately impact the government’s decision to regulate the App Store. One has to wonder why Apple thinks the fight is worth it. It’s battling in the courtroom with Epic Games and it’s risking regulation, when the whole problem could have gone away with a small cut to its commission structure. Guess “services” really is the future of Apple’s business if it’s willing to take this sort of risk.

TikTok deal gets more complicated

CHINA – 2020/08/05: In this photo illustration, a TikTok logo is seen displayed on a smartphone. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images)

Everyone is waiting for the next shoe to drop on the topic of TikTok’s fate. One of the world’s biggest mobile apps, TikTok is going to be banned in the U.S. if it fails to get a deal by the September 20 deadline. China has now thrown a wrench in deal negotiations, when it issued new restrictions over the export of AI technology. The order could possibly complicate a TikTok deal, as it could mean that TikTok needs to get Chinese government approval to transfer TikTok’s algorithms along with other IP to any potential U.S. acquirer.

That leaves buyers to either pursue a deal without the algorithms in order to meet the deadline, or try to negotiate some sort of transition period for the deal with the Committee on Foreign Investment in the United States (CFIUS). The latter would take some of the pressure off by dialing back on the immediacy required by the Trump E.O. Buyers could also try to get China to approve the export (which isn’t a timely option, really) or maybe license the algorithm from TikTok parent ByteDance.

Anyone who downplays the success of the continued success of TikTok without its algorithm has clearly not spent enough time on the app. While it now has the reach, its addictiveness comes from its eerily accurate algorithm that learns exactly what you want to see by way of using more than just basic signals. It’s non-trivial to spin that up again from scratch, but not an insurmountable hurdle, either, given the right investment and talent. Still, that’s not what buyers were looking for. Walmart engineers rebuilding TikTok? Can you imagine?

Weekly News

• Snapchat had a big August amid TikTok uncertainty. The continual uncertainty around TikTok’s future may have provided a big boost to Snapchat in August. The app saw approximately 28.5 million new installs last month — its single largest month for first-time downloads since May 2019, according to Sensor Tower, when it had then seen 41.2 million new installs. The only other month, besides May 2019, where Snapchat had seen more monthly downloads than it did in August was December 2016. Downloads were up 29% year-over-year in August 2020, compared with 9% growth in July. (Sarah Perez/TechCrunch)
• India bans PUBG Mobile, and over 100 other Chinese apps.Geopolitical tensions between India and China again spilled over into the app economy this week, as India banned 118 more Chinese apps that it deemed “prejudicial to sovereignty and integrity of India, defence of India, security of state and public order.” The country had banned 59 Chinese apps, including TikTok, in June. Newly banned apps include Baidu, WeChat Work, Tencent Weiyun, Rise of Kingdoms, APUS Launcher, a VPN for TikTok, Mobile Taobao, Youko, Sina News, Cam Card, PUBG Mobile and many others. (Manish Singh/TechCrunch)
• Pakistan blocks five dating apps including Tinder and Grindr. Pakistan said on Tuesday it had blocked Tinder, Grindr and three other dating apps for not adhering to local laws around “immoral content.” (Gibran Naiyyar Peshimam/Reuters)
• Fortnite leaves a $1.2 billion hole in the market. Fortnite has picked up slightly more than $1.2 billion in player spending since launching in March 2018, according to Sensor Tower estimates. On Google Play, it has generated $9.7 million following its release on the storefront in April 2020. In 2020, Fortnite generated $293 million in player spending, with close to $283 million spent on the App Store alone. (Craig Chapple/Sensor Tower)
• Robinhood faces SEC probe for not disclosing deals with high-speed traders. Stock-trading app popular with millennials Robinhood is facing a civil fraud investigation over its failure to fully disclose its practice of selling clients’ orders to high-speed trading firms. (Dave Michaels; Alexander Osipovich/The Wall Street Journal).
• Amazon’s big redesign on iOS to reach all US users by month-end. Amazon has given its iOS app a significant makeover featuring new colors, updated navigation, a floating quick access bar and other changes designed to make it easier to browse the app using one hand. The rollout will reach 100% of U.S. iOS users by the end of September 2020. The changes come at a time when more consumers are shopping online due to health concerns around the coronavirus outbreak. (Sarah Perez/TechCrunch)
• Apple launches COVID-19 ‘Exposure Notification Express’ with iOS 13.7 — Android to follow later this month. Apple and Google are introducing new tools that make it easier for public health authorities to implement digital exposure notification, without the need for developing and maintaining their own individual apps. The iOS 13.7 update launched this week, with Android 6.0 arriving this month. (Darrell Etherington/TechCrunch)
• Introducing Game IQ. App Annie introduced a new game analytics product, Game IQ, that uses data science to create and maintain a customizable taxonomy that automates game analysis at scale. Game IQ will deliver visual reports that include answers to questions like market size, class, genre, subgenre, tags and more. (App Annie)
• Google launches Google Kids Space, a ‘kids mode’ feature for Android, initially on Lenovo tablets. The feature offers a dedicated kids mode on Android tablets which will aggregate apps, books and videos for kids to enjoy and learn from. Kids Space will launch first on the Lenovo Smart Tab M10 HD Gen 2, but Google aims to bring Kids Space to more devices in time. (Sarah Perez/TechCrunch)
• Play Store, App Store revenue may be capped at 20% in Russia. A lawmaker in Russia submitted draft legislation that would cut the app store revenue of Apple and Google. If enacted, the law would limit commissions to 20% on both app stores, including paid downloads and in-app purchases. (Rei Padla/Android Community)
• Apple-Epic row being closely watched by German antitrust chief. Germany’s Federal Cartel Office said the Apple-Epic lawsuit in the U.S. “has most certainly attracted our interest,” and is considering opening its own inquiry into Apple. “We are at the beginning, but we are looking at this very closely,” said Andreas Mundt, head of the Federal Cartel Office. (Douglas Busvine/Reuters)

Apple Developer Round-up

• Apple introduces ‘offer codes’ to entice app users with free and discounted subscriptions. These one-time-use codes can be used digitally or printed out for use at offline events, allowing developers to more easily distribute either free or discounted subscriptions to customers. (Sarah Perez/TechCrunch)
• Upcoming tax and price changes for app and in-app purchases. Tax changes in Chile, Mexico, Saudi Arabia and Turkey rolled out this week. (Apple)
• Apple details new figures on app economy jobs. The news was distributed as part of Apple’s PR strategy in hopes of avoiding regulation. The company says the App Store now supports 2.1 million jobs across the U.S. and created 300,000 since April 2019. (Apple)

Funding and M&A (and IPOs)

• Bambuser raises $45 million for its live video shopping platform. The company’s offering, which works on mobile similar to Instagram Live, has been used H&M, Motivi, Moda Operandi, Frame, LUISAVIAROMA and Showfields.
• Toss Lab raises $13 million for its cross-platform collaboration platform, JANDI, the ‘Slack of Asia.’
• San Francisco-based Skillz will IPO at a $3.5 billion valuation. The company offers a platform for making mobile games competitive, allowing users to play with friends or strangers for cash, prizes or points. It also enables esports tournaments.
• Dating app Bumble reportedly talking to bankers about a 2021 IPO at a valuation of $6 to $8 billion.
• Shopping app Wish submitted its draft registration to the SEC for an IPO. The company has raised $1.6 billion from investors to date, and was worth $11.2 billion as of last summer’s financing round.
• Bangalore-based online learning startup Unacademy announced it has raised $150 million in a new financing round that valued the Facebook-backed firm at $1.45 billion (post-money).

Downloads

The Last Campfire

Apple in 2018 approached Hello Games, the studio behind the hit title No Man’s Sky, to ask about titles that would work on Apple Arcade. The Last Campfire is the result of those talks. The game offers an artistic story of a lost ember trapped in a puzzling place, searching for meaning and a way home. The game supports controllers in addition to native touch controls,

Start your journey in The Last Campfire.

Explore a beautiful wilderness filled with strange creatures and mysterious ruins. From @HelloGames

Play it today on Apple Arcade: https://t.co/7ruD8DGI9T pic.twitter.com/RKfmk3A8du

— Apple Arcade (@AppleArcade) September 4, 2020

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via IFTTT

This Week in Apps: Apple delays mobile ad apocalypse, app review changes, TikTok deal gets complicated

Welcome back to This Week in Apps, the TechCrunch series that recaps the latest OS news, the applications they support and the money that flows through it all.

The app industry is as hot as ever, with a record 204 billion downloads and $120 billion in consumer spending in 2019. People are now spending three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.

In this series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.

This week, a handful of top stories lead our coverage. TikTok deal talks this week got hung up over whether or not TikTok can export the app’s algorithms as part of any acquisition of its U.S. operations by an American firm. Apple also made headlines for delaying the rollout of a potentially disastrous iOS 14 change that’s been panicking the advertising community. It also announced that it will no longer ban apps from pushing out security updates and bug fixes, even when App Review has blocked their app updates over policy non-compliance.

Top Stories

Apple delays the mobile ad apocalypse

Image Credits: Apple

Apple this week announced it would delay a controversial change that would impact how ads are targeted to iOS and iPadOS mobile users. In a move aimed at protecting consumer privacy, Apple was poised to introduce a new, in-app prompt in iOS 14 that would ask users whether they would like to allow targeted ad tracking or not. Because most consumers generally don’t like the stalker-ish nature of digital ads, you know what they’d choose!

The change involves an identifier known as IDFA (Identifier for Advertisers) that allows advertisers to track how well their ad performs, including which channels drove what quality of users. This lets advertisers make better, more informed choices on their digital ad spend. It’s a key part of app marketing today.

Overall, we’re talking about a massive industry being disrupted. According to eMarketer, the U.S. mobile advertising reached $87.3 billion in 2019. Globally, app install ad spend was $57.8 billion in 2019 and was poised to grow to $118 billion in 2022, per AppsFlyer data. And yet, Apple doesn’t really participate here. Instead, it only offers Search Ads in its App Store. But to promote apps, Apple relies on editorial — like curated collections in the App Store and stories about apps on the Today tab. These can help direct traffic to apps, as can outside press, but the most efficient way to acquire users is paid spend on app install ads.

The mobile ad industry built itself up around the IDFA, offering tools focused on making it easier to measure ad performance and optimize ad spend. Apple was ready to wipe that industry out of existence. And marketers, as you can imagine, were panicking. Even calling it an apocalypse.

As an alternative, Apple was offering SKAdNetwork, introduced in 2018. But it lacked a lot of the information marketers rely on, like attribution or information on impressions, creative, remarketing, in-app events, lookback windows, user lifetime value, ROI, retention or cohort analysis.

This photo illustration taken on March 22, 2018 shows apps for Facebook and other social networks on a smartphone in Chennai. (Photo credit: ARUN SANKAR/AFP via Getty Images)

Last week, Facebook spoke up about how serious the change would be to its own business, saying that, in testing, it found that without targeting and personalization, mobile app install campaigns brought in 50% less revenue for publishers. “The impact to Audience Network on iOS 14 may be much more,” the company noted, referencing the ad network that uses Facebook data to target ads on publishers’ websites and apps.

A few days later, Apple announced the change was being put on hold, saying:

We believe technology should protect users’ fundamental right to privacy, and that means giving users tools to understand which apps and websites may be sharing their data with other companies for advertising or advertising measurement purposes, as well as the tools to revoke permission for this tracking. When enabled, a system prompt will give users the ability to allow or reject that tracking on an app-by-app basis. We want to give developers the time they need to make the necessary changes, and as a result, the requirement to use this tracking permission will go into effect early next year.

It’s unclear if Apple plans to respond to any of the industry’s concerns during this delay, or if it’s just given mobile marketers more time to figure out how to proceed in a data-less future. But at the very least, it’s the latter. Apple only announced the change to IDFA at WWDC this year — not enough time for an entire industry to retool itself around SKAdNetwork or implement other workarounds. The bigger question has to do with Apple’s long-term goals? It’s rewriting the rules to give itself a seat at the table, after all.

Apple puts an end to App Store Jail…for bug fixes

Image Credits: TechCrunch

Apple often put iOS users at risk when it blocked developers from publishing their apps to the App Store over policy violations. In some cases, developers have urgently needed to release security patches and other bug fixes that could cause major problems for their users.

As Apple has increasingly begun to crack down on App Store violations, including those that require apps to use Apple Pay for in-app purchases, more developers have been caught in desperate situations. Apple put Basecamp’s new email app on ice almost immediately after it launched, and even temporarily rejected the free WordPress app, because in some web views, users could make their way to a page where they could upgrade to a paid plan:

Heads up on why @WordPressiOS updates have been absent… we were locked by App Store. To be able to ship updates and bug fixes again we had to commit to support in-app purchases for .com plans. I know why this is problematic, open to suggestions. Allow others IAP? New name?

— Matt Mullenweg (@photomatt) August 21, 2020

WordPress’ Matt Mullenweg took to Twitter looking for help as a last alternative, after realizing the company couldn’t even ship its bug fixes until the issue had been resolved. The move caught Apple’s attention, and the situation was addressed. Apple even apologized.

A change to App Review, now live, will give developers caught in similar situations a way to keep pushing out their most critical updates, but not other app improvements. Apple’s plans had been previously announced at WWDC, but the rollout is timely as Apple steps up its policing of the App Store. However, making these rejections less of a potential disaster for developers may also see fewer developers talking publicly about their rejections or running to the press. With the urgency of a critical bug fix to drive them, the everyday rejection may go unnoticed.

Developers in the past had been scared of punitive actions for talking to the press about their troubles. But in the new antitrust era, more have begun to speak up when they feel Apple is unfairly punishing their business. That’s been good for U.S. regulators, at least. Congress has been collecting testimonies from developers that could ultimately impact the government’s decision to regulate the App Store. One has to wonder why Apple thinks the fight is worth it. It’s battling in the courtroom with Epic Games and it’s risking regulation, when the whole problem could have gone away with a small cut to its commission structure. Guess “services” really is the future of Apple’s business if it’s willing to take this sort of risk.

TikTok deal gets more complicated

CHINA – 2020/08/05: In this photo illustration, a TikTok logo is seen displayed on a smartphone. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images)

Everyone is waiting for the next shoe to drop on the topic of TikTok’s fate. One of the world’s biggest mobile apps, TikTok is going to be banned in the U.S. if it fails to get a deal by the September 20 deadline. China has now thrown a wrench in deal negotiations, when it issued new restrictions over the export of AI technology. The order could possibly complicate a TikTok deal, as it could mean that TikTok needs to get Chinese government approval to transfer TikTok’s algorithms along with other IP to any potential U.S. acquirer.

That leaves buyers to either pursue a deal without the algorithms in order to meet the deadline, or try to negotiate some sort of transition period for the deal with the Committee on Foreign Investment in the United States (CFIUS). The latter would take some of the pressure off by dialing back on the immediacy required by the Trump E.O. Buyers could also try to get China to approve the export (which isn’t a timely option, really) or maybe license the algorithm from TikTok parent ByteDance.

Anyone who downplays the success of the continued success of TikTok without its algorithm has clearly not spent enough time on the app. While it now has the reach, its addictiveness comes from its eerily accurate algorithm that learns exactly what you want to see by way of using more than just basic signals. It’s non-trivial to spin that up again from scratch, but not an insurmountable hurdle, either, given the right investment and talent. Still, that’s not what buyers were looking for. Walmart engineers rebuilding TikTok? Can you imagine?

Weekly News

• Snapchat had a big August amid TikTok uncertainty. The continual uncertainty around TikTok’s future may have provided a big boost to Snapchat in August. The app saw approximately 28.5 million new installs last month — its single largest month for first-time downloads since May 2019, according to Sensor Tower, when it had then seen 41.2 million new installs. The only other month, besides May 2019, where Snapchat had seen more monthly downloads than it did in August was December 2016. Downloads were up 29% year-over-year in August 2020, compared with 9% growth in July. (Sarah Perez/TechCrunch)
• India bans PUBG Mobile, and over 100 other Chinese apps.Geopolitical tensions between India and China again spilled over into the app economy this week, as India banned 118 more Chinese apps that it deemed “prejudicial to sovereignty and integrity of India, defence of India, security of state and public order.” The country had banned 59 Chinese apps, including TikTok, in June. Newly banned apps include Baidu, WeChat Work, Tencent Weiyun, Rise of Kingdoms, APUS Launcher, a VPN for TikTok, Mobile Taobao, Youko, Sina News, Cam Card, PUBG Mobile and many others. (Manish Singh/TechCrunch)
• Pakistan blocks five dating apps including Tinder and Grindr. Pakistan said on Tuesday it had blocked Tinder, Grindr and three other dating apps for not adhering to local laws around “immoral content.” (Gibran Naiyyar Peshimam/Reuters)
• Fortnite leaves a $1.2 billion hole in the market. Fortnite has picked up slightly more than $1.2 billion in player spending since launching in March 2018, according to Sensor Tower estimates. On Google Play, it has generated $9.7 million following its release on the storefront in April 2020. In 2020, Fortnite generated $293 million in player spending, with close to $283 million spent on the App Store alone. (Craig Chapple/Sensor Tower)
• Robinhood faces SEC probe for not disclosing deals with high-speed traders. Stock-trading app popular with millennials Robinhood is facing a civil fraud investigation over its failure to fully disclose its practice of selling clients’ orders to high-speed trading firms. (Dave Michaels; Alexander Osipovich/The Wall Street Journal).
• Amazon’s big redesign on iOS to reach all US users by month-end. Amazon has given its iOS app a significant makeover featuring new colors, updated navigation, a floating quick access bar and other changes designed to make it easier to browse the app using one hand. The rollout will reach 100% of U.S. iOS users by the end of September 2020. The changes come at a time when more consumers are shopping online due to health concerns around the coronavirus outbreak. (Sarah Perez/TechCrunch)
• Apple launches COVID-19 ‘Exposure Notification Express’ with iOS 13.7 — Android to follow later this month. Apple and Google are introducing new tools that make it easier for public health authorities to implement digital exposure notification, without the need for developing and maintaining their own individual apps. The iOS 13.7 update launched this week, with Android 6.0 arriving this month. (Darrell Etherington/TechCrunch)
• Introducing Game IQ. App Annie introduced a new game analytics product, Game IQ, that uses data science to create and maintain a customizable taxonomy that automates game analysis at scale. Game IQ will deliver visual reports that include answers to questions like market size, class, genre, subgenre, tags and more. (App Annie)
• Google launches Google Kids Space, a ‘kids mode’ feature for Android, initially on Lenovo tablets. The feature offers a dedicated kids mode on Android tablets which will aggregate apps, books and videos for kids to enjoy and learn from. Kids Space will launch first on the Lenovo Smart Tab M10 HD Gen 2, but Google aims to bring Kids Space to more devices in time. (Sarah Perez/TechCrunch)
• Play Store, App Store revenue may be capped at 20% in Russia. A lawmaker in Russia submitted draft legislation that would cut the app store revenue of Apple and Google. If enacted, the law would limit commissions to 20% on both app stores, including paid downloads and in-app purchases. (Rei Padla/Android Community)
• Apple-Epic row being closely watched by German antitrust chief. Germany’s Federal Cartel Office said the Apple-Epic lawsuit in the U.S. “has most certainly attracted our interest,” and is considering opening its own inquiry into Apple. “We are at the beginning, but we are looking at this very closely,” said Andreas Mundt, head of the Federal Cartel Office. (Douglas Busvine/Reuters)

Apple Developer Round-up

• Apple introduces ‘offer codes’ to entice app users with free and discounted subscriptions. These one-time-use codes can be used digitally or printed out for use at offline events, allowing developers to more easily distribute either free or discounted subscriptions to customers. (Sarah Perez/TechCrunch)
• Upcoming tax and price changes for app and in-app purchases. Tax changes in Chile, Mexico, Saudi Arabia and Turkey rolled out this week. (Apple)
• Apple details new figures on app economy jobs. The news was distributed as part of Apple’s PR strategy in hopes of avoiding regulation. The company says the App Store now supports 2.1 million jobs across the U.S. and created 300,000 since April 2019. (Apple)

Funding and M&A (and IPOs)

• Bambuser raises $45 million for its live video shopping platform. The company’s offering, which works on mobile similar to Instagram Live, has been used H&M, Motivi, Moda Operandi, Frame, LUISAVIAROMA and Showfields.
• Toss Lab raises $13 million for its cross-platform collaboration platform, JANDI, the ‘Slack of Asia.’
• San Francisco-based Skillz will IPO at a $3.5 billion valuation. The company offers a platform for making mobile games competitive, allowing users to play with friends or strangers for cash, prizes or points. It also enables esports tournaments.
• Dating app Bumble reportedly talking to bankers about a 2021 IPO at a valuation of $6 to $8 billion.
• Shopping app Wish submitted its draft registration to the SEC for an IPO. The company has raised $1.6 billion from investors to date, and was worth $11.2 billion as of last summer’s financing round.
• Bangalore-based online learning startup Unacademy announced it has raised $150 million in a new financing round that valued the Facebook-backed firm at $1.45 billion (post-money).

Downloads

The Last Campfire

Apple in 2018 approached Hello Games, the studio behind the hit title No Man’s Sky, to ask about titles that would work on Apple Arcade. The Last Campfire is the result of those talks. The game offers an artistic story of a lost ember trapped in a puzzling place, searching for meaning and a way home. The game supports controllers in addition to native touch controls,

Start your journey in The Last Campfire.

Explore a beautiful wilderness filled with strange creatures and mysterious ruins. From @HelloGames

Play it today on Apple Arcade: https://t.co/7ruD8DGI9T pic.twitter.com/RKfmk3A8du

— Apple Arcade (@AppleArcade) September 4, 2020

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Low-cost fitness bands see a resurgence in interest amid the pandemic

While wearable fitness devices saw an uptick in shipments in North America for Q2, the overall dollar amount of the market remained steady, according to new numbers out of Canalys. The discrepancy can be chalked up to a decline in the average selling price of the products.

Continuing an overall trend for 2020, the COVID-19 pandemic has increased interest in wearable devices, as consumer look to both monitor their health and track step counts, as mass closing have made many more sedentary. Perhaps owing to large unemployment figures and a massive economic downturn, the decisions customers have been making are trending forward the more frugal end of the spectrum.

Image Credits: Canalys

“Americans invested heavily in sub-US$50 trackers during the pandemic to stay accountable for the greater amount of time spent at home,” analyst Vincent Thielke said in a comment tied to the figures’ release.

The numbers buck larger on-going wearable trends, which have found smartwatches starting to utterly dominate the conversation. Of course, results that can tied directly to the pandemic ought not be viewed as indicators of broader, on-going trends. They do, however, seem to open up a perhaps temporary opportunity to low cost device makers. Amazon is tricking while the iron is hot with the Halo band, and a number of companies that have had continued success in Asia could potentially find an opening in the market. Subscription services appear to be the key way forward for monetizing relatively low-cost devices.

Apple continues to dominate the category overall. That’s helped along by a bump in shipments for the Apple Watch Series 3. The three-year-old smartwatch saw a 30% year-over-year growth, as a $200 alternative to Apple’s higher end devices.

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Daily Crunch: Apple delays ad-tracking changes

Apple announces a surprising delay, Facebook bans new political ads for the week before the U.S. election and SpaceX is testing its Starlink internet system. This is your Daily Crunch for September 3, 2020.

The big story: Apple delays ad-tracking changes

At this year’s Worldwide Developers Conference, Apple announced that in iOS 14 (currently in public beta), app developers would have to ask users whether they wanted to be tracked for ad purposes.

The move seems like a straightforward win for privacy, but some developers and advertisers have been pretty worried — Facebook, for example, predicted that this could render its Audience Network ad network completely ineffective. So Apple announced today that it’s delaying the changes until early next year.

“We want to give developers the time they need to make the necessary changes, and as a result, the requirement to use this tracking permission will go into effect early next year,” Apple said in a statement.

The tech giants

Facebook to block new political ads 1 week before Nov 3, adds more tools and rules for fair elections — Campaigns can still run ads to encourage people to vote, and they can still run older political ads.

Nintendo’s latest trick is turning the Switch into an RC controller for an AR Mario Kart game — The idea is that you can control real RC cars in your home.

Amazon launches an Alexa service for property managers — The company’s goal is to Alexa a tool for smart home management, even for those without their own Amazon account.

Startups, funding and venture capital

SpaceX confirms Starlink internet private beta underway, showing low latency and speeds over 100Mbps — While the current private beta is limited to SpaceX employees, the company said that the public Starlink beta is still on track to kick off later this year.

Optimizely acquired by content management company Episerver — In a statement, Episerver CEO Alex Atzberger said this is “the most significant transformation in our company’s history – one that will set a new industry standard for digital experience platforms.”

India’s Zomato raises $62 million from Temasek — The food delivery startup announced in January that Ant Financial had committed to provide it with $150 million, but apparently the firm has yet to deliver two-thirds of that capital.

Advice and analysis from Extra Crunch

9 top real estate and proptech investors: Cities and offices still have a future — Optimism still runs high for startup hubs as well as supercities like New York and San Francisco.

Media Roundup: Patreon joins unicorn club, Facebook could ban news in Australia — Are you interested in the media business? Do you appreciate my news-gathering skills? Then this is the roundup for you!

What happens when public SaaS companies don’t meet heightened investor expectations? — The lesson for startups is clear: You’d better be damn impressive.

(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Spirit Airlines starts testing biometric check-ins — It’s starting at Chicago’s O’Hare airport.

NSA call records collection ruled illegal by US appeals court — The Ninth Circuit Court of Appeals found that the NSA’s “bulk collection” of call records violated the law, but the judges fell short of ruling the program unconstitutional.

Disrupt 2020 Labor Day flash sale — Starting today, you can save $100 off the price of a Disrupt Digital Pro Pass.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

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Apple introduces ‘offer codes’ to entice app users with free and discounted subscriptions

Apple is introducing a change to how subscriptions work. No, it’s not lowering its cut, despite the government’s antitrust investigation and its lawsuit with Epic. It announced that developers will be able to offer subscriptions via a new feature, called offer codes. These one-time use codes can be used digitally or printed out for use at offline events, allowing developers to more easily distribute either free or discounted subscriptions to customers.

The company says the feature can help developers acquire, retain and win back subscribers.

Developers will be able to choose from one of three different pricing options for the new codes, which can be set to whatever duration the developer chooses. A free offer code will allow subscribers access to the service without charge for a specific trial period. A pay-as-you-go offer would allow the subscribers to pay a discount during each billing period for a specific duration, like a $1.99 per month trial that converts to a $9.99 per month standard subscription after a few months, for example. The third option is the pay-up-front offer, which allows subscribers to pay a one-time price for a specific duration, like $9.99 up front for a six-month subscription. When the subscription renews, the developer could then introduce standard pricing.

Image Credits: Apple

The offer codes can be distributed digitally, like through email, or they can be handed out at events, or even provided alongside a physical product — like a hardware device that also includes a subscription component, perhaps.

The codes will expire after a maximum of six months after creation. Customers can only redeem one code per offer, but they may be eligible to redeem multiple offers for a single subscription, depending on the developer’s configuration choices.

Customers can redeem the codes on iOS 14 and iPadOS 14 and later by way of a one-time code-redemption URL, or within the developer’s app if they’ve implemented the API designed for use with the feature. Apple then handles the rest of the redemption experience, including displaying the offer details screen, with app icon, subscription display name, duration and pricing.

The feature requires that developers set up their server to validate the receipts and receive status update notifications, which could leave out smaller developers or those who don’t run a server for their app.

With offer codes, the developer can also opt to provide a different experience to those who enter the app as a first-time subscriber, highlighting the value of a paid subscription and its features, for example.

The new offer codes will join Apple’s other two existing subscription offers available today, introductory and promotional. Developers can provide any combination — or all three — types of offers at once, depending on their business goals, Apple says.

Developers have wanted more flexibility over how they can present their subscriptions to end users, as it can often be difficult to convince a user to pay for a subscription until they spend time using the app.

However, the offer codes don’t address some developer complaints that Apple’s subscription cut is too high at 30% for year one, followed by a drop to 15% for year two and beyond. When developers are doing the real-world work to find their customers and market their app — like sending out emails or attending trade shows, for instance — they could send those newly acquired customers through their own payment mechanism, too, if Apple allowed it… or so the argument goes. Offer codes, meanwhile, represent one of the ways Apple is working to help direct new subscribers through its own payment mechanisms, Apple Pay.

Apple says the new offer codes will be available soon.

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