On-Demand Business Model Not Sure Cash Flow
December 23, 2016
The on-demand car service Uber established a business model that startups in Silicon Valley and other cities are trying to replicate. These startups are encountering more overhead costs than they expected and are learning that the on-demand economy does not generate instant cash flow. The LA Times reports that, “On-Demand Business Models Have Put Some Startups On Life Support.”
Uber uses a business model revolving around independent contractors who use their own vehicles as a taxi service that responds to individual requests. Other startups have sprung up around the same on-demand idea, but with a variety of services. These include flower delivery service BloomThat, on-demand valet parking Zirx, on-demand meals Spoonrocket, and housecleaning with Homejoy. The problem these on-demand startups are learning is that they have to deal with overhead costs, such as renting storage spaces, parking spaces, paying for products, delivery vehicles, etc.
Unlike Uber, which relies on the independent contractor to cover the costs of vehicles, other services cannot rely on the on-demand business model due to the other expenses. The result is that cash is gushing out of their companies:
It’s not just companies that are waking up to the fact being “on-demand” doesn’t guarantee success — the investor tide has also turned. As the downturn leads to more cautious investment, on-demand businesses are among the hardest-hit; funding for such companies fell in the first quarter of this year to $1.3 billion, down from $7.3 billion six months ago. ‘If you look in venture capital markets, the on-demand sector is definitely out of favor,’ said Ajay Chopra, a partner at Trinity Ventures who is an investor in both Gobble and Zirx.
These new on-demand startups have had to change their business models in order to remain in business and that requires dismantling the on-demand service model. On-demand has had its moment in the sun and will remain a lucrative model for some services, but until we invent instant teleportation most companies cannot run on that model.
Whitney Grace, December 23, 2016
Emphasize Data Suitability over Data Quantity
November 30, 2016
It seems obvious to us, but apparently, some folks need a reminder. Harvard Business Review proclaims, “You Don’t Need Big Data, You Need the Right Data.” Perhaps that distinction has gotten lost in the Big Data hype. Writer Maxwell Wessel points to Uber as an example. Though the company does collect a lot of data, the key is in which data it collects, and which it does not. Wessel explains:
In an era before we could summon a vehicle with the push of a button on our smartphones, humans required a thing called taxis. Taxis, while largely unconnected to the internet or any form of formal computer infrastructure, were actually the big data players in rider identification. Why? The taxi system required a network of eyeballs moving around the city scanning for human-shaped figures with their arms outstretched. While it wasn’t Intel and Hewlett-Packard infrastructure crunching the data, the amount of information processed to get the job done was massive. The fact that the computation happened inside of human brains doesn’t change the quantity of data captured and analyzed. Uber’s elegant solution was to stop running a biological anomaly detection algorithm on visual data — and just ask for the right data to get the job done. Who in the city needs a ride and where are they? That critical piece of information let the likes of Uber, Lyft, and Didi Chuxing revolutionize an industry.
In order for businesses to decide which data is worth their attention, the article suggests three guiding questions: “What decisions drive waste in your business?” “Which decisions could you automate to reduce waste?” (Example—Amazon’s pricing algorithms) and “What data would you need to do so?” (Example—Uber requires data on potential riders’ locations to efficiently send out drivers.) See the article for more notes on each of these guidelines.
Cynthia Murrell, November 30, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Amazon’s Alexa Popularizes Digital Assistants
June 17, 2016
Digital assistants are smarter than ever. I remember when PDAs were the wave of the future and meant to revolutionize lives, but they still relied on human input and did not have much in the ways of artificial intelligence. Now Cortana, Siri, and Alexa respond to vocal commands like an episode of Star Trek. Digital assistants are still limited in many ways, but according to Venture Beat Alexa might be changing how we interact with technology: “How Amazon’s Alexa Is Bringing Intelligent Assistance Into The Mainstream”.
Natural language processing teamed with artificial intelligence has made using digital assistants easier and more accepted. Predictive analytics specialist MindMeld commissioned a “user adoption survey” of voice-based intelligent assistants and the results show widespread adoption.
Amazon’s Echo teamed with the Alexa speech-enabled vocal device are not necessarily dominating the market, but Amazon is showing the potential for an intelligent system with added services like Uber, music-streaming, financial partners, and many more.
“Such routine and comfort will be here soon, as IA acceptance and use continue to accelerate. What started as a novelty and source of marketing differentiation from a smartphone manufacturer has become the most convenient user interface for the Internet of Things, as well as a plain-spoken yet empathetic controller of our digital existence.”
Amazon is on the right path as are other companies experimenting with the digital assistant. My biggest quip is that all of these digital assistants are limited and have a dollar sign attached to them greater than some people’s meal budgets. It is not worth investing in an intelligent assistant, unless needed. I say wait for better and cheaper technology that will be here soon.
Whitney Grace, June 17, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Stolen Online Account Info Now More Valuable than Stolen Credit Card Details
March 2, 2016
You should be aware that criminals are now less interested in your credit cards and other “personally identifiable information” and more keen on exploiting your online accounts. As security firm Tripwire informs us in their State of Security blog, “Stolen Uber, PayPal Accounts More Coveted than Credit Cards on the Dark Web.” Writer Maritza Santillan explains:
“The price of these stolen identifiers on the underground marketplace, or ‘the Dark Web,’ shows the value of credit cards has declined in the last year, according to security firm Trend Micro. Last week, stolen Uber account information could be found on underground marketplaces for an average of $3.78 per account, while personally identifiable information, such as Social Security Numbers or dates of birth, ranged from $1 to $3.30 on average – down from $4 per record in 2014, reported CNBC. Furthermore, PayPal accounts – with a guaranteed balance of $500 –were found to have an average selling price of $6.43. Facebook logins sold for an average of $3.02, while Netflix credentials sold for about 76 cents. By contrast, U.S.-issued credit card information, which is sold in bundles, was listed for no more than 22 cents each, said CNBC.”
The article goes on to describe a few ways criminals can leverage these accounts, like booking Uber “ghost rides,” or assembling personal details for a very thorough identity theft. Pros say the trend means service providers to pay closer attention to usage patterns, and to beef up their authentication processes. Specifically, says Forrester’s Andras Cser, it is time to move beyond passwords; instead, he proposes, companies should look for changes in biometric data, like phone position and finger pressure, which would be communicated back to them by our mobile devices. So we’re about to be even more closely monitored by the companies we give our money to. All for our own good, of course.
Cynthia Murrell, March 2, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Cybercrime as a Service Drives Cyber Attacks on Uber Accounts and More
January 26, 2016
Several articles lately have shined light on the dynamics at play in the cybercriminal marketplaces of the Dark Web; How much is your Uber account worth?, for example, was recently published on Daily Mail. Summarizing a report from security researchers at Trend Micro for CNBC, the article explains this new information extends the research previously done by Intel Security’s The Hidden Data Economy report. Beyond describing the value hierarchy where Uber and Paypal logins cost more than social security numbers and credit cards, this article shares insights on the bigger picture,
“’Like any unregulated, efficient economy, the cybercrime ecosystem has quickly evolved to deliver many tools and services to anyone aspiring to criminal behavior,’ said Raj Samani, chief technology officer for Intel Security EMEA. ‘This “cybercrime-as-a-service” marketplace has been a primary driver for the explosion in the size, frequency, and severity of cyber attacks.
‘The same can be said for the proliferation of business models established to sell stolen data and make cybercrime pay.’”
Moving past the shock value of the going rates, this article draws our attention to the burgeoning business of cybercrime. Similarly to the idea that Google has expanded the online ecosystem by serving as a connector, it appears marketplaces in the Dark Web may be carving out a similar position. Quite the implications when you consider the size of the Dark Web.
Megan Feil, January 26, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Hackers Opt for Netflix and Uber over Credit Card Theft on Dark Web
January 25, 2016
It is no surprise that credit cards and other account information is sold on the Dark Web but which accounts are most valuable might surprise. Baiting us to click, the article It turns out THIS is more valuable to hackers than your stolen credit card details on the United Kingdom’s Express offers the scoop on the going rate of various logins cybercriminals are currently chasing. Hacked Uber, Paypal and Netflix logins are the most valuable. The article explains,
“Uber rolled-out multi-factor authentication in some markets last year which decreased the value of stolen account details on the Dark Web, the International Business Times reported. According to the Trend Micro study, the price for credit cards is so comparatively low because banks have advanced techniques to detect fraudulent activity.”
The sales of these accounts are under $10 each, and according to the article, they seem to actually be used by the thief. Products and experiences, as consumable commodities, are easier to steal than cash when organizations fail to properly protect against fraudulent activity. The takeaway seems to be obvious.
Megan Feil, January 25, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Bing Snapshots for In-App Searches
September 9, 2015
Developers have a new tool for incorporating search data directly into apps, we learn in “Bing Snapshots First to Bring Advanced In-App Search to Users” at Search Engine Watch. Apparently Google announced a similar feature, Google Now on Tap, earlier this year, but Microsoft’s Bing has beaten them to the consumer market. Of course, part of Snapshot’s goal is to keep users from wandering out of “Microsoft territory,” but many users are sure to appreciate the convenience nevertheless. Reporter Mike O’Brien writes:
“With Bing Snapshots, developers will be able to incorporate all of the search engine’s information into their apps, allowing users to perform searches in context without navigating outside. For example, a friend could mention a restaurant on Facebook Messenger. When you long-press the Home button, Bing will analyze the contents of the screen and bring up a snapshot of a restaurant, with actionable information, such as the restaurant’s official website and Yelp reviews, as well Uber.”
Bing officials are excited about the development (and, perhaps, scoring a perceived win over Google), declaring this the start of a promising relationship with developers. The article continues:
“Beyond making sure Snapshots got a headstart over Google Now on Tap, Bing is also able to stand out by becoming the first search engine to make its knowledge graph available to developers. That will happen this fall, though some APIs are already available on the company’s online developer center. Bing is currently giving potential users sneak peeks on its Android app.”
Hmm, that’s a tad ironic. I look forward to seeing how Google positions the launch of Google Now on Tap when the time comes.
Cynthia Murrell, September 9, 2015
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Bing Is A Winner…Huh?
July 29, 2015
Bing is the joke of Internet search. Skilled Web surfers…no, scratch that term. Nobody “surfs” the Internet anymore, unless you are an older person trying to maintain relevancy. Skilled Web users Google or play DuckDuckGo, but according to Mashable, Bing might be ringing in as many jokes anymore, “Microsoft’s Bing Isn’t Such A Failure After All.”
Microsoft VP of advertiser and publisher Rik van der Kooi said that Bing is now able to pay for itself, contrary to its launch six years ago when it hemorrhaged cash from the beginning. Microsoft wants Bing to be even more profitable by its 2016 fiscal year, which started earlier this month on July 1.
“Microsoft should provide more clarity on Bing’s financials with its next earnings release in July. Profitable or not, Bing is clearly moving in the right direction. The service’s improved financial position, combined with recent strides in pushing its share of the search market to 20%, offer the clearest argument yet that Microsoft still has the power to muscle its way into lucrative and mature technology categories and find solid footing there.”
The article recounts Bing’s unprofitable history, culminating in its more recent successes that have funneled more green into the search engine. This includes Apple making Bing the default search on its mobile OS, a renewed partnership with Yahoo, a ten year deal with AOL, and Bing sending map imaging to Uber. It finishes by calling Bing a contender and it looks like that may be true. Let’s wait until they start making self-driving cars until victory is declared.
Whitney Grace, July 29, 2015
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Search Cheerleader Seeks Text Analytics Unicorns
June 12, 2015
The article on Venture Beat whimsically titled Where Are the Text Analytics Unicorns provides yet another cheerleader for search. The article uses Aileen Lee’s “unicorn” concept of a company begun since 2003 and valued at over a billion dollars. (“Super unicorns” are companies valued at over a hundred billion dollars like Facebook.) The article asks why no text analytics companies have joined this exclusive club? Candidates include Clarabridge, NetBase and Medallia.
“In the end, the answer is a very basic one. Contrast the text analytics sector with unicorns that include Uber — Travis Kalanick’s company — and Airbnb, Evernote, Flipkart, Square, Pinterest, and their ilk. They play to mass markets — they’re a magic mix of revenue, data, platform, and pizazz — in ways that text analytics doesn’t. The tech companies on the unicorn list — Cloudera, MongoDB, Pivotal — provide or support essential infrastructure that covers a broad set of needs.”
Before coming to this conclusion, the article posits other possible reasons as well, such as the sheer number of companies competing in the field, or even competition from massive companies like IBM and Google. But these are dismissed for the more optimistic end note that essentially suggests we give the text analytics unicorns a year. Caution advised.
Chelsea Kerwin, June 12, 2015
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
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