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Robotic Automations

Tesla lobbies for Elon and Kia taps into the GenAI hype | TechCrunch


Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Is it me, or is the Tesla board being a bit extra these days as it tries to convince shareholders to vote in favor of relocating the […]

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Software Development in Sri Lanka

Robotic Automations

Uber's and Lyft's ride-hailing deal with Minnesota comes at a cost | TechCrunch


Uber and Lyft drivers in Minnesota will see higher pay thanks to a deal between the state and the country’s two largest ride-hailing companies. The upshot: a new law that gives some protections to drivers while placing limits on state government. The bill, which Governor Tim Walz has supported publicly and is expected to sign, […]

© 2024 TechCrunch. All rights reserved. For personal use only.


Software Development in Sri Lanka

Robotic Automations

Uber has a new way to solve the concert traffic problem | TechCrunch


Uber is taking a shuttle product it developed for commuters in India and Egypt and converting it for an American audience. The ride-hail and delivery giant announced Wednesday at its annual Go-Get event in New York City it will launch a shuttle service in certain U.S. cities this summer. The service will eventually cater to […]

© 2024 TechCrunch. All rights reserved. For personal use only.


Software Development in Sri Lanka

Robotic Automations

Uber to acquire Foodpanda's Taiwan unit from Delivery Hero for $950M in cash  | TechCrunch


Uber Technologies announced Tuesday that it will buy the Taiwan unit of Delivery Hero’s Foodpanda for $950 million in cash. The deal is part of Uber Eats’ strategy to expand in Asia, specifically by strengthening its position in Taiwan. On the other hand, it also underscores Delivery Hero’s ongoing retreat from that same market: the sale […]

© 2024 TechCrunch. All rights reserved. For personal use only.


Software Development in Sri Lanka

Robotic Automations

Uber promises member exclusives as Uber One passes $1B run-rate | TechCrunch


Uber plans to deliver more perks to Uber One members, like member-exclusive events, in a bid to gain more revenue through subscriptions. 

“You will see more member-exclusives coming up where members have exclusive access to events and experiences, which will kind of surprise and delight our members,” said Uber chief financial officer Prashanth Mahendra-Rajah Wednesday morning during Uber’s first-quarter earnings call. 

Uber CEO Dara Khosrowshahi said Uber One’s membership fees are “in excess of $1 billion” run-rate. In other words, Uber is extrapolating its current subscription revenue to estimate $1 billion in annual revenue. This is the first time Uber has shared run-rate numbers on its subscription service, which was introduced in November 2021. 

Uber One costs $9.99 per month or $99.99 annually and offers perks like $0 delivery fee on eligible food and groceries, up to 10% off certain deliveries and pick up orders, better pricing on certain rides and more. 

Uber said it would share more information on these experiences in the future, but some members have received emails already about exclusive deals, like a party with rapper Post Malone at the Fontainebleau in Las Vegas.

The ride-hail giant wouldn’t be the first to offer events to members. Credit card companies like Chase, for example, give members in New York City access to a Sapphire Lounge at the South Street Seaport and VIP access to concerts at Pier 17 over the summer. 

Uber in 2022 launched a pilot feature to help customers book events and reservations at restaurants. It was a limited pilot, and Uber has not provided any updates, but it’s possible such features will be leveraged to provide Uber One members access to events.

The introduction of member events is an attempt to attract more subscribers, who tend to send more on the platform and use more of Uber’s products. 

“I’ll remind folks that members spend 3.4 times as much as non-members per month, so it is a great vehicle for us to drive adoption and drive, really, attachment with our various services, as well,” said Mahendra-Rajah. 

The CFO noted that members now generate 32% of mobility and delivery gross bookings, and over 45% of delivery gross bookings specifically. 

The increased delivery spend can be partially attributed to the use of Uber Cash. In 2023, Uber dropped the 5% discounts on rides it offered to Uber One members in favor of a cash-back scheme. Mahendra-Rajah said a quarter of all Uber Cash earned from rides in the U.S. is being redeemed on delivery. For Uber Business riders, that penetration is even higher, with 60% of the Uber Cash earned on rides being redeemed in delivery.

“We think that membership is a powerful lever in terms of general penetration into our marketplace and the frequency of growth that we’re seeing,” said Mahendra-Rajah.

Uber’s strategy for the past few years has been to actively cross-sell customers between its offerings – food delivery to grocery, grocery to alcohol, alcohol to mobility – in order to create in-app stickiness. The Uber One membership is an amalgamation of these efforts. 

To increase retention of Uber One, the company is also pushing its annual pass, which lets users have a cheaper monthly option if they sign on for the year. Mahendra-Rajah said the annual pass has resulted in retention increasing “nearly 200 basis points on a year-on-year basis in March.”

Instacart deal fueling growth in suburbs

Khosrowshahi said during Wednesday’s earnings call that the platform, specifically Uber Eats, is growing faster in the suburbs than in urban areas where Uber has higher penetration. 

“It’s about getting the basics right – building an audience and a brand, increasing selection, making sure we’ve got pricing right and making sure the quality of the service continues to be high,” said the CEO. 

He said Uber’s recent deal with Instacart, which allows Instacart customers to use the app to order from Uber Eats restaurants across the U.S., will help Uber grow in the suburbs. Khosrowshahi also noted that penetration with Domino’s and other merchants make Uber “well positioned to grow into the suburbs.”

In terms of other growth areas to watch out for more generally, Mahendra-Rajah pointed to new products like Uber for Business, Uber Health, UberX reserve and shared rides as areas that are growing 80% year-over-year. The CFO also said 20% of new customers are coming from these new products, as well.  

Uber records loss even as demand grows

Uber recorded a revenue of $10.1 billion and gross bookings of $37.7 billion in the first quarter, a year-over-year increase of 15% and 21%, respectively. Yet despite increased demand, the company posted a $654 million loss – a surprise to analysts who expected a profitable quarter  after Uber reported its first full-year profit in 2023. 

Uber attributed the loss to legal settlement payments and equity investments. 


Software Development in Sri Lanka

Robotic Automations

Uber, Nvidia-backed Serve Robotics hits public markets with $40M splash | TechCrunch


Serve Robotics, the Uber and Nvidia-backed sidewalk robot delivery company, debuted publicly on the New York stock exchange Thursday, making it the latest startup to choose going public via a reverse merger as an alternative path to capital needed to fund growth.

The company, which spun out of Uber’s acquisition of Postmates in 2021, hits the Nasdaq under the ticker “SERV” with gross proceeds of roughly $40 million — “prior to deducting underwriting discounts and offering expenses,” per regulatory filings — at a share price of $4.

Serve completed its reverse merger with blank-check company Patricia Acquisition Corp in August 2023, and at the same time secured $30 million in a round led by existing investors Uber, Nvidia and Wavemaker Partners, bringing its total amount raised at the time to $56 million. While Serve’s debut in the public markets comes from a reverse merger and not a SPAC, the two alternate paths to IPO are not too dissimilar. They both provide startups with a faster route to public markets. However, pulling this particular financial lever has its risks, especially if the company is pre-revenue or bringing in very little revenue. We need look no further than the countless fallen autonomous vehicle and electric vehicle companies to determine that this is not a golden ticket to longevity or profitability.

Like any publicly traded company, this path does require financial disclosures that provides information on revenue and profits or losses.

Serve brought in $207,545 in revenue last year, up from $107,819 in 2022, per regulatory filings. That’s at a loss of $1.5 million in 2023 and $1.04 million in 2022. However, Serve Robotics said it’s expecting enormous growth fueled by money generated by going public. Those funds will go towards funding R&D for future generations of robots, manufacturing activities, geographic expansion and general working capital and corporate purposes.

The startup also has some big revenue ambitions. Serve said it aims to generate between $60 million and $80 million in annual revenue, with contribution margins of over 50% and positive cash flow by the end of 2025. The company pointed to recent momentum, including its 25% month-over-month increase in deliveries since 2022 when the startup started delivering for Uber Eats.

Future growth will come from scaling the 100 robots deployed today in Los Angeles to up to 2,000 robots in multiple U.S. cities by the end of next year through a contract with Uber Eats. Serve has also enlisted Magna International as a manufacturing partner. Currently, Serve handles 300 restaurants via the Uber Eats and 7-Eleven platform in LA, but has its eyes on Dallas, San Diego and Vancouver, Canada, according to CEO Ali Kashani.

Serve projects that a big portion of its revenue will come from ads, Kashani told TechCrunch.

“I never thought that I would start a robotics company and then be in the ads business,” said a tired, but excited, Kashani in a phone interview minutes after the bell rang. It’s normal for companies to barely sleep before making their public debut out of a need to finalize all the financials and pure adrenaline. “But it’s great because this can help offset the delivery costs, so everybody wins.”

Kashani said Serve has had a lot of inbound interest for ads on its cute little sidewalk robots. On an annual basis, ad revenue can generate 25% to 50% of Serve’s total revenue, he said.

That’s one of the value propositions Serve has pitched to investors. Serve also says it can tap the rapid progress in AI and robotics to help reduce reliance on cars, because who needs something as small as a burrito delivered in a sedan anyway?

“The tailwind here is that these robots are a lot more scalable than a lot of the alternative approaches we have,” said Kashani. “If you look at a car, it has about 3,000 times more kinetic energy than one of our robots, so just by nature, these are safer… for pedestrians, bikers for everybody else, and I think that’s definitely recognized when we when we talk to cities. So there’s a lot of regulatory momentum, but you also have the fact that there is a shortage of labor. You can see companies in the delivery space are still not necessarily profitable, and they’re looking for ways to bring some mix of automation into their fleets. So we see a lot of interest in in the solution that we’re providing.”

Serve’s robots operate at Level 4 autonomy, meaning they can operate autonomously within certain boundaries and conditions. However, Serve still relies on remote human operators to supervise operations in certain scenarios, like at intersections or if something unexpected happens.

The company’s offering is expected to close around April 22. Serve’s gross proceeds from the offering could hit about $46 million, according to Kashani, if Aegis Capital Corp., the deal’s underwriter, takes the company up on its 45-day option to buy up to 150,000 additional shares of common stock, or about 15% of the number of shares sold, to cover any over-allotments.

Upon the closing of the merger, Uber held a 16.6% stake and Nvidia an 14.3% stake in Serve, according to regulatory filings. An April filing shows that stake will change to 11.5% and 10.1% respectively once the offering closes, but a Serve spokesperson caveated that those percentages may change given the $4 opening share price.

Sarfraz Maredia, Uber’s vice president of delivery and head of its Americas region, has joined Serve’s board.

Serve Robotics started its life as Postmates X, the robotics division of on-demand delivery company Postmates. The autonomous sidewalk robots started delivering to Postmates customers in multiple Los Angeles neighborhoods in 2018. It started a commercial service in 2020.

Uber acquired Postmates in late 2020 for $2.65 billion. Three months later, Postmates X spun out as an independent company called Serve Robotics. The new name was taken from the autonomous sidewalk delivery bot that was developed and piloted by Postmates.


Software Development in Sri Lanka

Robotic Automations

Uber Eats launches a TikTok-like video feed to boost discovery | TechCrunch


Uber Eats is launching a TikTok-like short-form video feed to boost discovery and help restaurants showcase their dishes. Uber Eats’ senior director of Product, Awaneesh Verma, told TechCrunch exclusively in an interview that the new feed is being tested in New York, San Francisco and Toronto. The company plans to launch the feed worldwide in the future.

With this launch, Uber Eats now joins numerous other popular apps that have launched their own short-form video feeds following TikTok’s rise in popularity, including Instagram, YouTube, Snapchat and Netflix to name a few. TechCrunch also recently learned that LinkedIn has started experimenting with its own TikTok-like feed.

The new Uber Eats short-form videos are visible in carousels placed across the app, including the homescreen. Once you click on a video preview, you will enter into a vertical feed of short-form content that you can swipe through. You will only see content from restaurants that are close enough to deliver to you.

Verma says the feed is designed to replicate the experience of being in a restaurant in person and seeing people preparing food and being inspired to try something new. As you swipe through the feed, you may come across a video of an ice cream shop preparing a Nutella milkshake, or a video of an Indian restaurant packing rice separately from curry so it doesn’t get soggy by the time it gets delivered to your house.

“The early data shows people are much more confident trying new dishes and trying things that they otherwise wouldn’t have,” Verma said. “Even little things like being able to see texture, and the details of what a portion size looks like, or what’s in a dish, has been really inspiring for our users.”

Image Credits: Uber Eats

Uber Eats notes that the videos aren’t ads, as the company isn’t charging merchants for the content placements.

Many restaurants run social media accounts on apps like Instagram and TikTok to reach new customers and showcase their food using short-form videos. By allowing merchants to share short-form videos directly in the Uber Eats app, the company is helping restaurants reach customers directly as they decide what to order. As for consumers, many people already use social media to discover new places and dishes to try, so Uber Eats likely hopes that its new feed will encourage users to try to find inspiration directly within its own app.

Some users might not see the launch as a welcome addition to the app, as they may feel overwhelmed by the sheer amount of different short-form video feeds in popular apps. While it may make sense to have short-form video feeds in entertainment and social media apps, the introduction of one in a food-delivery app may not be a favorable choice for some.

Verma also shared that in order to further support merchants, the company has revamped its Uber Eats Manager software and added personalized growth recommendations. The software is now capable of encouraging restaurants to grow their business by doing things like running a promotion on a certain dish or adding photos to menu listings.

In addition, the company is going to launch an entirely new app for restaurant managers this summer that is designed to make it easier for restaurants to be more proactive on the go. For instance, the app could alert a restaurant manager that their store is having issues or that they may want to boost sales with new ads.

Uber Eats announced on Monday that it now has more than 1 million merchants around the world on its platform, across 11,000 cities in six continents.


Software Development in Sri Lanka

Robotic Automations

Uber Eats courier's fight against AI bias shows justice under UK law is hard won | TechCrunch


On Tuesday, the BBC reported that Uber Eats courier Pa Edrissa Manjang, who is Black, had received a payout from Uber after “racially discriminatory” facial recognition checks prevented him from accessing the app, which he had been using since November 2019 to pick up jobs delivering food on Uber’s platform.

The news raises questions about how fit U.K. law is to deal with the rising use of AI systems. In particular, the lack of transparency around automated systems rushed to market, with a promise of boosting user safety and/or service efficiency, that may risk blitz-scaling individual harms, even as achieving redress for those affected by AI-driven bias can take years.

The lawsuit followed a number of complaints about failed facial recognition checks since Uber implemented the Real Time ID Check system in the U.K. in April 2020. Uber’s facial recognition system — based on Microsoft’s facial recognition technology — requires the account holder to submit a live selfie checked against a photo of them held on file to verify their identity.

Failed ID checks

Per Manjang’s complaint, Uber suspended and then terminated his account following a failed ID check and subsequent automated process, claiming to find “continued mismatches” in the photos of his face he had taken for the purpose of accessing the platform. Manjang filed legal claims against Uber in October 2021, supported by the Equality and Human Rights Commission (EHRC) and the App Drivers & Couriers Union (ADCU).

Years of litigation followed, with Uber failing to have Manjang’s claim struck out or a deposit ordered for continuing with the case. The tactic appears to have contributed to stringing out the litigation, with the EHRC describing the case as still in “preliminary stages” in fall 2023, and noting that the case shows “the complexity of a claim dealing with AI technology”. A final hearing had been scheduled for 17 days in November 2024.

That hearing won’t take place after Uber offered — and Manjang accepted — a payment to settle, meaning fuller details of what exactly went wrong and why won’t be made public. Terms of the financial settlement have not been disclosed, either. Uber did not provide details when we asked, nor did it offer comment on exactly what went wrong.

We also contacted Microsoft for a response to the case outcome, but the company declined comment.

Despite settling with Manjang, Uber is not publicly accepting that its systems or processes were at fault. Its statement about the settlement denies courier accounts can be terminated as a result of AI assessments alone, as it claims facial recognition checks are back-stopped with “robust human review.”

“Our Real Time ID check is designed to help keep everyone who uses our app safe, and includes robust human review to make sure that we’re not making decisions about someone’s livelihood in a vacuum, without oversight,” the company said in a statement. “Automated facial verification was not the reason for Mr Manjang’s temporary loss of access to his courier account.”

Clearly, though, something went very wrong with Uber’s ID checks in Manjang’s case.

Pa Edrissa Manjang (Photo: Courtesy of ADCU)

Worker Info Exchange (WIE), a platform workers’ digital rights advocacy organization which also supported Manjang’s complaint, managed to obtain all his selfies from Uber, via a Subject Access Request under U.K. data protection law, and was able to show that all the photos he had submitted to its facial recognition check were indeed photos of himself.

“Following his dismissal, Pa sent numerous messages to Uber to rectify the problem, specifically asking for a human to review his submissions. Each time Pa was told ‘we were not able to confirm that the provided photos were actually of you and because of continued mismatches, we have made the final decision on ending our partnership with you’,” WIE recounts in discussion of his case in a wider report looking at “data-driven exploitation in the gig economy”.

Based on details of Manjang’s complaint that have been made public, it looks clear that both Uber’s facial recognition checks and the system of human review it had set up as a claimed safety net for automated decisions failed in this case.

Equality law plus data protection

The case calls into question how fit for purpose U.K. law is when it comes to governing the use of AI.

Manjang was finally able to get a settlement from Uber via a legal process based on equality law — specifically, a discrimination claim under the U.K.’s Equality Act 2006, which lists race as a protected characteristic.

Baroness Kishwer Falkner, chairwoman of the EHRC, was critical of the fact the Uber Eats courier had to bring a legal claim “in order to understand the opaque processes that affected his work,” she wrote in a statement.

“AI is complex, and presents unique challenges for employers, lawyers and regulators. It is important to understand that as AI usage increases, the technology can lead to discrimination and human rights abuses,” she wrote. “We are particularly concerned that Mr Manjang was not made aware that his account was in the process of deactivation, nor provided any clear and effective route to challenge the technology. More needs to be done to ensure employers are transparent and open with their workforces about when and how they use AI.”

U.K. data protection law is the other relevant piece of legislation here. On paper, it should be providing powerful protections against opaque AI processes.

The selfie data relevant to Manjang’s claim was obtained using data access rights contained in the U.K. GDPR. If he had not been able to obtain such clear evidence that Uber’s ID checks had failed, the company might not have opted to settle at all. Proving a proprietary system is flawed without letting individuals access relevant personal data would further stack the odds in favor of the much richer resourced platforms.

Enforcement gaps

Beyond data access rights, powers in the U.K. GDPR are supposed to provide individuals with additional safeguards, including against automated decisions with a legal or similarly significant effect. The law also demands a lawful basis for processing personal data, and encourages system deployers to be proactive in assessing potential harms by conducting a data protection impact assessment. That should force further checks against harmful AI systems.

However, enforcement is needed for these protections to have effect — including a deterrent effect against the rollout of biased AIs.

In the U.K.’s case, the relevant enforcer, the Information Commissioner’s Office (ICO), failed to step in and investigate complaints against Uber, despite complaints about its misfiring ID checks dating back to 2021.

Jon Baines, a senior data protection specialist at the law firm Mishcon de Reya, suggests “a lack of proper enforcement” by the ICO has undermined legal protections for individuals.

“We shouldn’t assume that existing legal and regulatory frameworks are incapable of dealing with some of the potential harms from AI systems,” he tells TechCrunch. “In this example, it strikes me…that the Information Commissioner would certainly have jurisdiction to consider both in the individual case, but also more broadly, whether the processing being undertaken was lawful under the U.K. GDPR.

“Things like — is the processing fair? Is there a lawful basis? Is there an Article 9 condition (given that special categories of personal data are being processed)? But also, and crucially, was there a solid Data Protection Impact Assessment prior to the implementation of the verification app?”

“So, yes, the ICO should absolutely be more proactive,” he adds, querying the lack of intervention by the regulator.

We contacted the ICO about Manjang’s case, asking it to confirm whether or not it’s looking into Uber’s use of AI for ID checks in light of complaints. A spokesperson for the watchdog did not directly respond to our questions but sent a general statement emphasizing the need for organizations to “know how to use biometric technology in a way that doesn’t interfere with people’s rights”.

“Our latest biometric guidance is clear that organisations must mitigate risks that come with using biometric data, such as errors identifying people accurately and bias within the system,” its statement also said, adding: “If anyone has concerns about how their data has been handled, they can report these concerns to the ICO.”

Meanwhile, the government is in the process of diluting data protection law via a post-Brexit data reform bill.

In addition, the government also confirmed earlier this year it will not introduce dedicated AI safety legislation at this time, despite Prime Minister Rishi Sunak making eye-catching claims about AI safety being a priority area for his administration.

Instead, it affirmed a proposal — set out in its March 2023 whitepaper on AI — in which it intends to rely on existing laws and regulatory bodies extending oversight activity to cover AI risks that might arise on their patch. One tweak to the approach it announced in February was a tiny amount of extra funding (£10 million) for regulators, which the government suggested could be used to research AI risks and develop tools to help them examine AI systems.

No timeline was provided for disbursing this small pot of extra funds. Multiple regulators are in the frame here, so if there’s an equal split of cash between bodies such as the ICO, the EHRC and the Medicines and Healthcare products Regulatory Agency, to name just three of the 13 regulators and departments the U.K. secretary of state wrote to last month asking them to publish an update on their “strategic approach to AI”, they could each receive less than £1 million to top up budgets to tackle fast-scaling AI risks.

Frankly, it looks like an incredibly low level of additional resource for already overstretched regulators if AI safety is actually a government priority. It also means there’s still zero cash or active oversight for AI harms that fall between the cracks of the U.K.’s existing regulatory patchwork, as critics of the government’s approach have pointed out before.

A new AI safety law might send a stronger signal of priority — akin to the EU’s risk-based AI harms framework that’s speeding toward being adopted as hard law by the bloc. But there would also need to be a will to actually enforce it. And that signal must come from the top.


Software Development in Sri Lanka

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