Although technology Electronics is among the most profitable areas and stronger in the world today, that none of the content at all...
The Seattle City Council this week approved an ordinance that will allow drivers for Uber and Lyft to form unions, becoming the first U.S. city to pass such legislation.
The City Council voted 9-0 in favor of the ordinance, which doesn't require the mayor's signature to pass.
Drivers for Uber and other ride-sharing networks are classified as independent contractors, like taxi drivers, though there has been a push to change the classification to employees. As independent contractors, they aren't afforded any of the protections of the National Labor Relations Act.
The two largest ride-sharing networks, Uber and Lyft, have argued that the ordinance violates federal labor laws, and the unionized independent contractors could fall under antitrust scrutiny because of their potential to fix prices.
The ordinance requires ride-sharing networks and cab companies alike to list all of their independent contractors with the city. That list will be made available to unions, which could reach out to the drivers to organize.
Driver Freedom
Uber and Lyft responded to Seattle's decision by stressing the freedom their models offer drivers.
Lyft drivers are in full control of where and when they work, the company said in a statement provided to the E-Commerce Times by spokesperson Paige Thelen.
"Unfortunately, the ordinance passed today threatens the privacy of drivers, imposes substantial costs on passengers and the city, and conflicts with longstanding federal law," Lyft said. "We urge the mayor and full council to reconsider this legislation and listen to the voices of their constituents who choose to drive with Lyft because of the flexible economic opportunity it offers."
Uber drivers choose how many hours they work, the company said in a statement spokesperson Jessica Santillo provided to the E-Commerce Times.
"Uber is creating new opportunities for many people to earn a better living on their own time and their own terms," Uber said. "Drivers say that with flexible and independent work with Uber, 50 percent of them drive fewer than 10 hours a week, 70 percent have full-time or part-time work outside of Uber and 65 percent choose to vary the hours they drive 25 percent week to week."
Who's the Winner
Going by the applause that reportedly filled City Hall when the vote was handed down and the pushback from the ride-sharing networks, it might appear the drivers won the day.
Drivers might hurt themselves more than they gain, however, if they move forward with unionization, according to Rod Martin, CEO of The Martin Organization.
"The effort to unionize Uber and Lyft drivers has nothing to do with helping them and everything to do with making them less competitive with taxis," he told the E-Commerce Times. "When even David Plouffe is against it, you know it's a terrible idea."
Ride-share drivers are full-time workers sweating it out in a factory somewhere, Martin said. They are people who have been trying to earn a bit of extra money on the side.
"Unionizing them will just make them more expensive and thus less attractive, helping the Teamsters by destroying a wonderful opportunity both for the drivers and for consumers," he said. "The entire exercise is shameful, and all too predictable."
Rules of the Game
Unionization just might be a move of a chess piece, part of larger effort to raise independent contractors to employees. Whatever the motive, court battles involving ride-sharing networks have been redefining what independent contractors and employees are, suggested Rob Enderle, principal analyst at the Enderle Group.
"This is less of an evolution and more of old rules being applied consistently to new opportunities," he told the E-Commerce Times. "I think we are going to get a lot of case law on both sides before this is done, but the industry will work through this as others have in the past."
What's especially interesting is how cab companies have been putting so much effort into killing off the startups, while neglecting the issues surrounding their own inability to advance, Enderle said.
"That seldom works long term," he said, "but the efforts are keeping the legacy firms from advancing and likely will assure they won't survive."
Quinten Plummer is a longtime technology reporter and an avid PC gamer who explored local news for a few years, covering law enforcement and government beats, before returning to writing about things run by ones and zeros and the people who make them. If it pushes pixels or improves lives, he wants to learn all he can about it.
Seattle Lets Ride-Sharing Drivers Unionize
The Seattle City Council this week approved an ordinance that will allow drivers for Uber and Lyft to form unions, becoming the f...
UK police on Tuesday arrested a 21-year-old man as part of their investigation into last month's hack on VTech's systems.
The man was arrested in Bracknell, 30 miles west of London, on suspicion of unauthorized access to a computer to facilitate the commission of an offense and suspicion of causing a computer to perform functions to secure or enable unauthorized access to a program or data, police said.
The South East Regional Organized Crime Unit, whose officers made the arrest, also seized a number of unspecified electronic items.
The Hack's Targets
The breach affected more than 4.8 million parents' accounts and nearly 6.4 million related child profiles, according to VTech.
About 1.2 million of the children had the Kid Connect app enabled. The app let them exchange voice and text messages, photos, and drawings between VTech tablets and smartphones.
The majority of the victims -- about 2.2 million parents and 2.9 million kids -- were in the United States.
VTech suspended Learning Lodge, the Kid Connect network and several websites to allow Mandiant, a subsidiary of security firm FireEye, to conduct a security assessment and help beef up security.
The Threat to Kids
Parent data taken includes names; email, mailing and IP addresses; secret question and answer for password retrieval; the password itself; and download history.
Kids' profiles on VTech listed only their names, genders and birthdates, VTech said, but someone claiming to be the hacker told Motherboard he obtained the kids' head shots and chat logs.
"Even the name, gender or birthday of children in the wrong hands is a concern," pointed out Brian Laing, VP at Lastline.
Such information can allow a predator to establish familiarity with a potential victim, he told the E-Commerce Times.
The Impact of the Arrest
The arrest "will have the same impact on cybercrime as a high-profile drug bust has on international drug trafficking: none," said Jeff Hill, channel marketing manager at Stealthbits.
"The potential financial rewards so far outweigh the risk of being caught that resource-constrained international law enforcement currently serves as a nonexistent deterrent, and that's likely to be the case for the foreseeable future," he told the E-Commerce Times.
An Angel in Disguise?
The hacker who breached VTech's systems did so to call attention to the company's poor cybersecurity practices, he told Motherboard. He reportedly feared the company would ignore him if he approached it directly.
There was evidence indicating others previously might have accessed the data, the hacker said, and he claimed he didn't want to publish the data or profit from it.
"Society's perception of a criminal's motives is irrelevant," Hill pointed out. "An unarmed man who jumps the White House fence and enters the front door to highlight security vulnerabilities is a criminal, irrespective of his arguably virtuous intent."
Assuming best case or best intentions "is a mistake," Lastline's Laing contended. The stolen data could be used to access an online VTech account and hack into a toy that allows voice collection to let the hacker gather information on a family.
Hackers potentially could push out dangerous messages to toys that could speak once they'd broken into a consumer's online account, he suggested.
"How would your child respond if their toy suddenly said, 'Mommy needs you to open the front door right now'?" Laing asked.
Beefing Up Security in Connected Toys
Companies making connected toys or other Internet of Things appliances "need to really think seriously about security" and perhaps hire security companies specializing in application testing, Laing said.
However, security in connected toys likely will come about because of "a general reluctance of customers to embrace toys and applications that require the submission of personal information to operate," Stealthbits' Hill suggested, as well as manufacturers acceding to that trend.
Richard Adhikari has written about high-tech for leading industry publications since the 1990s and wonders where it's all leading to. Will implanted RFID chips in humans be the Mark of the Beast? Will nanotech solve our coming food crisis? Does Sturgeon's Law still hold true? You can connect with Richard on Google+.
UK Police Pinch Suspect in VTech Hack
UK police on Tuesday arrested a 21-year-old man as part of their investigation into last month's hack on VTech's systems. ...
Two Yahoo investors, acting independently, have publicly called for radical changes or a potential sale of the firm.
Both Canyon Capital Advisors and SpringOwl Asset Management apparently were unappeased by last week's announcement that Yahoo would spin off its core Internet business.
Canyon Capital Advisors on Friday sent a letter to Yahoo Chairman Maynard Webb, urging the company to find a buyer for its core Internet businesses or to sell the company outright, as The Wall Street Journal first reported.
The letter chides the board for a lack of independence from top management, rebuffing CEO Marissa Mayer (pictured above), who wants another year to turn things around at the struggling company.
"We do not understand the Board's continued support of the Company's senior management team, given its track record, its failure to increase value for shareholders and the recent spate of executive departures from the Company," Canyon Capital officials wrote.
Canyon Capital is not alone in calling for a sale. Jeffrey Smith, managing member of Starboard Value, last month fired off a letter to Yahoo, urging the company to consider a plan to sell its core business.
Taking a different tack, SpringOwl Asset Management this weekend sent the board a 99-page presentation calling for a radical overhaul of the firm, including workforce reduction of 9,000 and the replacement of Mayer.
Mayer, who gave birth to twins just a day after announcing the spinoff plan, has been the target of criticism for failing to keep up with changes at Google and Facebook, among other things.
Transition to Mobile
Among the recommendations in the SpringOwl plan: Yahoo should reduce its headcount to about 3,000 employees; it should get rid of Mayer, who failed to properly transition the company from a desktop to mobile Internet-focused company; and it should bring in Liberty Media on its board to help unlock value with a better tax analysis of the Alibaba and Yahoo Japan stakes.
The plan also calls for the sale and partial leaseback of Yahoo's Sunnyvale campus, which measures 1 million square feet and has US$1.5 billion to $1.8 billion in underlying land and office space value.
Yahoo should focus on its highly respected sports and financial news content, the plan suggests, it should milk its PC-based revenue, which accounts for 80 percent of overall revenue.
Too Little, Too Late
"What Yahoo may be going through is the case of a board that is rethinking some previous decisions that may have proven unrealistic and out of line with the actual needs of the company," said Susan Schreiner, an analyst at C4 Trends.
"Many businesses that were flying high several years ago are remaking themselves and forging various forms of creative dealmaking," she told the E-Commerce Times, citing HP's recent split as an example.
"These are complicated transactions in complex times, and perhaps Yahoo's board might be taking a time-out while it figures out its next moves and ways to maximize shareholder value," Schreiner said.
Yahoo would be a "tough nut to crack" for any management company, observed Kevin Krewell, a principal analyst at Tirias Research.
The best option right now likely would be a complete breakup of the company or an outright sale, he told the E-Commerce Times.
"The strategic problem for Yahoo is that it doesn't know which direction to turn -- content provider, search engine, social media site etc.," Krewell said. "It has elements of each, but no defining character to stand out against Facebook, Google, YouTube and a myriad of content providers."
The only alternative to an outright sale or breakup of the company would be a radical restructuring of the firm around a single focus -- such as a social media outlet, a content provider or a search engine, he suggested.
Since the Yahoo board began to consider a change, all of the above options have been on the table, according to Rob Enderle, principal analyst at the Enderle Group.
"Right now, the company looks incredibly weak," he told the E-Commerce Times. "They started with a poorly thought-through plan to sell the Alibaba stock to raise money and fund the turnaround. That [later] became a plan to spin out the core assets, leaving a firm with just the Alibaba stock and no money."
Yahoo's top executives basically are working from a place where many investors consider them "insane" because they have no consistent strategy, said Enderle. To those investors, the solution is to replace Yahoo's current management team, and let new leaders start over with a clean slate.
David Jones is a freelance writer based in Essex County, New Jersey. He has written for Reuters, Bloomberg, Crain's New York Business and The New York Times.
Disgruntled Yahoo Investors Suggest Different Paths Forward
Two Yahoo investors, acting independently, have publicly called for radical changes or a potential sale of the firm. Both Canyon Ca...
Alibaba Group last week announced that it has entered an agreement to buy the South China Morning Post and other media assets of SCMP Group.
Terms of the agreement were not disclosed.
Alibaba, which claims to be the world's largest online and mobile commerce company, said its vision was to provide objective coverage of China to readers around the English-speaking world.
Hard-Hitting Tradition
The South China Morning Post, a Hong Kong-based English language daily, is known for its tough coverage of Beijing despite the mainland government's frequent attempts to interfere with media coverage. A number of U.S. media and Internet organizations have clashed with the Chinese government's attempts to muzzle hard-hitting reports.
"The
South China Morning Post
is unique because it focuses on coverage of China in the English language," said Joe Tsai, executive vice chairman of Alibaba Group. "This is a proposition that is in high demand by readers around the world who care to understand the world's second largest economy."
Alibaba's plan was to expand the paper's readership through digital distribution to reach a global audience, he said, and to open up the paywall in order to increase digital readership.
SCMP welcomed the opportunity for Alibaba to increase its investment in the paper's editorial and business operations, said Robert Hu, chief executive officer of SCMP.
Besides the South China Morning Post, the acquisition includes the magazine, recruitment, outdoor media, events and conferences, education and digital media businesses of SCMP Group. The company's online presence includes SCMP.com, as well as Chinese websites Nanzao.com and Nanzaozhinan.com. Its portfolio of magazines includes the Hong Kong editions of Esquire, Elle, Cosmopolitan, the PEAK and Harper's Bazaar.
Hidden Agendas
Alibaba is known to have close ties with China's central government, which has been ratcheting up its competition with the U.S. for global economic supremacy.
"If I were at the South China Morning Post, I would be very concerned about the sustained ability for free press coverage were the acquisition to go through," Nucleus Research VP of Research Rebecca Wettemann told the E-Commerce Times.
As for concerns that the acquisition might be an attempt to steer press coverage in a certain direction, Alibaba's Tsai pledged in a letter to SCMP readers to maintain the publication's editorial integrity.
"In reporting the news, the SCMP will be objective, accurate and fair," he noted. "This means having the courage to go against conventional wisdom, and taking care to verify stories, check sources and seek all viewpoints."
Alibaba Chairman Jack Ma likely is leveraging the paper to increase the influence and brand of his business, asserted Kevin Krewell, principal analyst at Tirias Research.
Ma could be using Jeff Bezos' acquisition of The Washington Post as a reference point, he suggested.
The paper will have a more pro-China slant under the new structure, Krewell predicted.
"The claims of editorial independence should be considered with a grain of salt," he told the E-Commerce Times. "Jack Ma has an agenda."
Alibaba's interest also may be connected to the Chinese government's desire for a more sympathetic ear, following the near-economic crisis that briefly rattled global markets earlier this year, mused Charles King, principal analyst at Pund-IT.
"The inspiration for this deal may be entirely financial," he told the E-Commerce Times, "since Alibaba and other China-based companies listed in the U.S. and other global stock exchanges have suffered due to the Chinese government's saber rattling and its poor management of the country's economy.
The paper's new owners may want to tread lightly on their new acquisition, King suggested, because any short-term attempt to muzzle it may backfire and lead to heightened negative attention from major foreign media outlets.
David Jones is a freelance writer based in Essex County, New Jersey. He has written for Reuters, Bloomberg, Crain's New York Business and The New York Times.
Alibaba May Have to Handle SCMP With Kid Gloves
South China Morning Post and other media assets of SCMP Group. Alibaba, which claims to be the world's largest online and mobile comm...
Amazon has pulled some of this holiday season's most popular gifts from its website amid safety concerns, according to reports that surfaced Monday. It apparently stopped selling several brands of electric self-balancing scooters -- aka "hoverboards" -- including the Swagway (pictured above).
The move comes on the heels of last week's news that Delta Airlines, United Airlines and American Airlines no longer would allow the devices on flights, either as carry-ons or in checked luggage.
Reports of fires and even explosions have made headlines in the past month. A now-infamous video captures a hoverboard bursting into flames inside a shopping mall.
The primary culprit is believed to be the devices' lithium-ion batteries, which can overheat quickly, especially if overcharged or overworked.
As a result of these safety concerns, retailers have begun to pull the boards from store shelves. Amazon is not alone in removing some boards from its website. Overstock.com has stopped selling the devices altogether.
However, at press time some retailers -- including Sharper Image and Macy's -- were carrying the boards on their respective websites. Also, at least two brands, Jetson and Razor, were still for sale on Amazon.
Amazon did not respond to our request for further details.
Not on Board
The ubiquitous self-balancing two-wheel scooters rolled out earlier this year and quickly became a breakout phenomenon. Their popularity is due in part to manufacturers opting to dub them "hoverboards" -- an effort to borrow some steam from the fictional flying boards featured in Back to the Future II, which just happened to be set in November 2015.
As boards that actually fly or even hover are still mostly in the realm of fiction, these two-wheeled devices have filled the void.
Hoverboards have become one of this holiday season's "must have" devices as a result, and sales have been brisk even as safety concerns have continued to mount.
"While hoverboards can be fun, they also carry risks and hidden dangers as we've recently discovered," said Susan Schreiner, principal analyst at C4 Trends.
"The publicity of fires has certainly caught the attention of those considering giving a hoverboard for a holiday gift," she told the E-Commerce Times.
Battery on Board
Unlike past holiday gift crazes, the boards are not the brainchild of one company. Several firms -- mostly from China -- are marketing products that are very similar in design. These self-balancing two-wheeled scooters utilize a gyroscope that allows the rider to stay upright and even perform basic tricks.
In most cases, the problems associated with these devices aren't technically with the actual boards -- rather they're with the power source that drives the motor.
"Apparently there are battery issues," said Roger Kay, principal analyst at Endpoint Technologies Associates.
Lithium-ion batteries can be dangerous due to the heat they give off; if excessive, it can cause a fire. For this reason, commercial airlines already have banned lithium-ion batteries in checked luggage, and shipping companies have set guidelines on those that are transported in bulk by air.
Current demand for hoverboard products may have resulted in poor quality control, so some batteries may be a problem while others are reasonably safe. Past problems with lithium-ion batteries have led to product recalls and redesigns.
"In the PC business, when a bad battery batch or poor matchup between a battery and other components occurred, it's boiled down to throwing out the batch or re-engineering the product, which has taken a cycle or two," Kay told the E-Commerce Times.
Lack of Standards
The problem for consumers is that it can be almost impossible to know whether the battery may or may not be an issue. Many batteries may be pushed beyond what would be considered safe.
"There is no standard with these devices right now," warned Chris Byrne, content director for TimetoPlayMag.com.
"The U.S. Consumer Product Safety Commission has started an investigation, but they have not set guidelines," he told the E-Commerce Times.
"Many products have warnings that say, 'not for kids weighing 50 pounds or more,' yet there is nothing like this for the hoverboards," he added.
As a result, the motor might work harder when older kids or adults ride the boards, which could cause the battery to overheat, resulting in a fire.
"I could suggest that people look at the guidelines -- but these don't exist, as there is no testing standard," Byrne noted.
Use at Your Own Risk
This holiday's must-have product could be product debacle of the year.
"The idea that this could smolder on a plane is worrisome, so that is going to hurt sales," suggested Byrne.
Because the issue appears to be with batteries -- not the actual product -- consumers may want to seek out more well-known and established brands if they are determined to hover around the holidays.
"It seems as if several brands have been identified as 'safe,' such as Razor and Jetson," said Schreiner.
However, for those with concerns, the best advice could be to "avoid the product until the industry gets this ironed out," suggested Kay. "Hold off -- at least this season."
Peter Suciu is a freelance writer who has covered consumer electronics, technology, electronic entertainment and fitness-related trends for more than a decade. His work has appeared in more than three dozen publications, and he is the co-author of Careers in the Computer Game Industry (Career in the New Economy series), a career guide aimed at high school students from Rosen Publishing. You can connect with Peter on Google+.
Bad Batteries May Cause Hoverboard Craze to Flame Out
Amazon has pulled some of this holiday season's most popular gifts from its website amid safety concerns, according to reports t...
T-Mobile last week introduced its latest promotion aimed at attracting subscribers from rival mobile phone carriers: 12 months of Hulu streaming service for Verizon customers who switch to T-Mobile.
The promotion, which the company called the fourth gift in its series of holiday surprises, follows previous attempts to lure customers. Last month it offered Simple Choice subscribers three months of Unlimited LTE, then it offered Sprint subscribers US$200 to switch. The most recent promotion gave AT&T customers who switched a phone memory upgrade and half off accessories.
In addition to a year's worth of Hulu service, T-Mobile will give Verizon customers who switch up to $125 off in-store accessories such as smartwatches, speakers, fitness trackers and headphones.
"Verizon customers put up with a lot of sneaky tricks from Big Red these days: overpriced data, shocking overage penalties and no early upgrade option -- just to name a few," T-Mobile CEO John Legere said.
"We are going to show their customers why the Un-carrier is better with a real gift: half-off the best accessories and a full year of Hulu that comes with unlimited LTE streaming with Binge On at T-Mobile," he added.
Mobile Viewing
The promotion is directed at mobile viewing, and while it specifically called out viewing habits on Hulu, it could be seen as a countermove aimed at addressing Verizon's recently launched video service.
"Hulu is very much responding to go90," said Joel Espelien, senior analyst at The Diffusion Group. "That service is Hulu-esque, and its content is meant to appeal to the millennial audience."
While go90 is available across all the carriers, it is seen as a Verizon service, which is something T-Mobile may understand, he told the E-Commerce Times.
Bundled Offering
Video could help lure in that youth market, but T-Mobile's connection to Hulu also could help as other carriers launch services or leverage their video options. Both AT&T and Verizon are already in the pay-TV business.
"It is not that T-Mobile is thinking it has to have a video bundle, but T-Mobile doesn't want to be left out without one," said Espelien.
"They are in a position where they have to bundle a third-party service as a way to level the playing field," he suggested.
Un-Carrier Promotions
While the promotion may be in part about ensuring that T-Mobile has similar offerings to its rivals, it's primarily about enticing Verizon customers to make the switch.
"Ultimately, any of these promotions boil down to trying to get customers," said Abel Nevarez, analyst in the mobile group at IHS Technology.
"Verizon customers have the network on their side, so T-Mobile is looking to attract customers with other options, including its music service," he told the E-Commerce Times.
"This is a play for younger customers, and so far these promotions have been good for attracting customers, so they work on some level," Nevarez added. "These aren't just gimmicks, as we are seeing that they are resonating with customers."
Hulu's Attraction
The video service could be a good option because it's established enough that people know it yet might not subscribe to it.
"Hulu is something that most millennials may have heard of, so this is pretty clever because something with lower brand awareness might not have been known, and Netflix is something they're already using," said Espelien.
It could take promotions like this to get anyone to seriously consider changing carriers.
"Churn is really, really low in the U.S. wireless industry, which is also saturated, so this is why you do see this sort of pouching going on," added Espelien.
Gift Worthy?
T-Mobile noted that this is the fourth promotion in its Un-carrier Unwrapped surprises, but compared to the others it may be more of a stocking stuffer.
"We have to look at the offer in combination with the various accessories that it is offering," said Roger Entner, principal analyst at Recon Analytics.
"T-Mobile has basically offered a $200 discount to Sprint subscribers, but this is a free year of a service that customers might not want, so that feels pretty Grinch-like," he told the E-Commerce Times.
"To get the full advantage of the offering if you are a Verizon customer, you have to buy something on top of it," he added. "It is certainly less generous than the offers they had before."
About the Networks
T-Mobile needs to offer such promotions because Verizon offers better nationwide coverage, according to Entner.
"T-Mobile is expanding its network, and they are working really hard," he said.
"If you are in Manhattan or Boston, as well as most cities, T-Mobile isn't really that different, but the moment you go out further, Verizon and AT&T hold up much better," Entner added. "T-Mobile knows that coverage remains the sore point, so they're addressing it where they can, and in the meantime they'll offer you goodies."
Peter Suciu is a freelance writer who has covered consumer electronics, technology, electronic entertainment and fitness-related trends for more than a decade. His work has appeared in more than three dozen publications, and he is the co-author of Careers in the Computer Game Industry (Career in the New Economy series), a career guide aimed at high school students from Rosen Publishing. You can connect with Peter on Google+.
T-Mobile Sets Hulu Lure to Snag Verizon Customers
T-Mobile last week introduced its latest promotion aimed at attracting subscribers from rival mobile phone carriers: 12 months of H...