Daily Crunch: Uber and Lyft defeated again in court
A California court weighs in as Prop. 22 looms, Google removes popular apps over data collection practices and the Senate subpoenas Jack Dorsey and Mark Zuckerberg. This is your Daily Crunch for October 23, 2020.
A California appeals court ruled that yes, a new state law applies to Uber and Lyft drivers, meaning that they must be classified as employees, rather than independent contractors. The judge ruled that contrary to the rideshare companies’ arguments, any financial harm does not “rise to the level of irreparable harm.”
However, the decision will not take effect for 30 days — suggesting that the real determining factor will be Proposition 22, a statewide ballot measure backed by Uber and Lyft that would keep drivers as contractors while guaranteeing things like minimum compensation and healthcare subsidies.
“This ruling makes it more urgent than ever for voters to stand with drivers and vote yes on Prop. 22,” a Lyft spokesperson told TechCrunch.
The tech giants
Google removes 3 Android apps for children, with 20M+ downloads between them, over data collection violations — Researchers at the International Digital Accountability Council found that a trio of popular and seemingly innocent-looking apps aimed at younger users were violating Google’s data collection policies.
Huawei reports slowing growth as its operations ‘face significant challenges’ — The full impact of U.S. trade restrictions hasn’t been realized yet, because the government has granted Huawei several waivers.
Senate subpoenas could force Zuckerberg and Dorsey to testify on New York Post controversy — The Senate Judiciary Committee voted in favor of issuing subpoenas for Facebook’s Mark Zuckerberg and Twitter’s Jack Dorsey.
Startups, funding and venture capital
Quibi says it will shut down in early December — A newly published support page on the Quibi site says streaming will end “on or about December 1, 2020.”
mmhmm, Phil Libin’s new startup, acquires Memix to add enhanced filters to its video presentation toolkit — Memix has built a series of filters you can apply to videos to change the lighting, the details in the background or across the whole screen.
Nordic challenger bank Lunar raises €40M Series C, plans to enter the ‘buy now, pay later’ space — Lunar started out as a personal finance manager app but acquired a full banking license in 2019.
Advice and analysis from Extra Crunch
Here’s how fast a few dozen startups grew in Q3 2020 — This is as close to private company earnings reports as we can manage.
The short, strange life of Quibi — Everything you need to know about the Quibi story, all in one place.
(Reminder: Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)
France rebrands contact-tracing app in an effort to boost downloads — France’s contact-tracing app has been updated and is now called TousAntiCovid, which means “everyone against Covid.”
Representatives propose bill limiting presidential internet ‘kill switch’ — The bill would limit the president’s ability to shut down the internet at will.
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