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March 19, 2019
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Mammoth Biosciences adds the final piece of the CRISPR diagnostics puzzle to its toolkit

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With the announcement today that Mammoth Biosciences has received the exclusive license from the University of California, Berkeley to the new CRISPR protein Cas14, the company now has the last piece of its diagnostics toolkit in place.

Cas14 is a newly discovered protein from the lab of Jennifer Doudna, a pioneer in gene-editing research and a member of the first research team to identify and unlock the power of CRISPR technology.

Doudna and Mammoth Biosciences co-founder Lucas Harrington were part of the team of researchers to identify the new Cas14 protein, which can identify single-stranded DNA. The journal Science published their findings in October 2018.

“With the addition of this protein that is DNA binding and target single strands, it really means we can target any nucleic acid,” says Mammoth chief executive Trevor Martin . “It’s an extension of the toolbox.”

Mammoth Biosciences lab

The licensing deal moves Mammoth one step closer toward its goal of low-cost, in-home molecular diagnostics for any illness. “The idea is we want to make this test so affordable that you can imagine going down to your CVS or Walgreens so you can bring this access to molecular level information [to questions like] if my kid has strep or flu before dropping them off to school.”

With the addition of the Cas14 protein to its portfolio, Mammoth can now run even more refined tests to assess multiple aspects of a virus or bacteria that may be present.

“When you run a single test [it’s about] how much information are you getting,” says Martin. “Are you learning that HPV is present or absent, or are you learning whether it’s a strain of HPV which has a risk of cervical cancer.”

The more granular Mammoth can be with its diagnostics, the better able the company is to determine a number of different conditions or factors that may influence treatment down the road.

Now, the company is shifting to product development and testing. The company has signed its first partnerships in the past few months with several undisclosed companies, Martin says.

Mammoth is one of the first companies to turn CRISPR’s gene editing technologies to tackle the diagnostics problem in medicine, rather than concentrate on therapies or drug development. “Even though CRISPR has taken the gene editing field by storm, we’re really at the beginning of what we’re doing.”

While applications for editing as a therapeutic tool have been tied up in patent litigation between the Berkeley lab and the Broad Institute, using CRISPR as a diagnostics tool is pretty clearly the purview of Cal. So Mammoth has fewer obstacles in its path as it works to develop its diagnostics product.

“Long term Cas14 is the most diverse protein,” says Martin, so the protein can perform more varied types of analysis. The other CRISPR proteins are limited in the types of DNA or RNA strands they can target, but the Cas14 is more flexible and can edit any sequence of proteins. 

News Source = techcrunch.com

ICE has a huge license plate database targeting immigrants, documents reveal

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Newly released documents reveal Immigration and Customs Enforcement is tracking and targeting immigrants through a massive license plate reader database supplied with data from local police departments — in some cases violating sanctuary laws.

The documents, obtained by a Freedom of Information lawsuit filed by the American Civil Liberties Union and released Tuesday, reveal the vehicle surveillance system collects more than a hundred million license plates a month from some of the largest cities in the U.S., including New York and Los Angeles, both of which are covered under laws limiting police cooperation with immigration agencies.

More than 9,000 ICE agents have access to the database, run by Vigilant Solutions, feeding some six billion vehicle detection records into Thomson Reuters’ investigative platform LEARN, to which police departments can buy access.

“The public has a right to know when a government agency — especially an immoral and rogue agency such as ICE — is exploiting a mass surveillance database that is a threat to the privacy and safety of drivers across the United States,” said Vasudha Talla, staff attorney with the ACLU of Northern California, in an email to TechCrunch.

Talla, who sued ICE to release the documents, said the government “should not have unfettered access to information that reveals where we live, where we work, and our private habits.” Critics have noted several high-profile cases of police misusing and improperly accessing license plate data.

Automatic license plate readers (ALPR) scan and detect license plates, along with the time, date and location from thousands of cameras installed across the country to spot criminals and fugitives with warrants out for their arrest. The ACLU previously called it one of the new and emerging forms of mass surveillance in the United States. Companies like Vigilant feed data collected from ALPR cameras into databases accessible to law enforcement and federal agencies, which the ACLU accused ICE of using to find and deport immigrants.

ICE has a “hot list” of more than 1,100 license plates of suspects, felons or other subjects of interest, according to the documents released. Plates on the hot list trigger an alert to ICE that the vehicle has been spotted, including where and when.

“Hot lists are just one method by which ICE agents can track drivers with this system,” said Talla.

A spokesperson for ICE did not comment by our deadline on how many hot list detections led to deportations or removals from the U.S. Spokespeople for Thomson Reuters and Vigilant Solutions also did not comment.

It’s the third effort by ICE to secure access to the database in the past five years, after earlier attempts in 2014 over privacy concerns and 2015 over price negotiations failed. The agency rushed to secure the contract before a planned hike in cost by Thomson Reuters toward the end of 2017.

ICE spent $6.1 million on its latest contract in February 2018, gaining access to 80 law enforcement agencies covering almost two-thirds of the U.S. population. To allay fears of potential misuse, the agency was required to pass a revised privacy impact assessment explaining how ICE can and cannot use the license plate data. In one released email to an NPR reporter, ICE said agents “can only access data” uploaded by police departments if they elect to share it through the system.

But the ACLU found emails of ICE agents directly contacting local law enforcement officers to ask for license plate search data, circumventing the database.

Correspondence between ICE and a local police detective asking for license plate data outside of the ALPR database (Image: ACLU/supplied)

Over a years-long effort, one ICE agent — whose name was redacted by the government — sent several requests to a La Habra police detective by email asking for license plate data.

La Habra is one of 169 police departments in California, and is one of dozens of departments known to use ALPR. But the city’s police department is not on Vigilant’s list of law enforcement partners that supply license plate data to ICE, the documents show.

We asked La Habra Chief of Police Jerry Price if turning over records to ICE was in violation of California’s sanctuary status, but he would not comment.

“By going to local police informally, ICE is able to access locally collected driver location data without having to ask for formal access to the local system through the LEARN network, which could trigger local oversight or concern,” said Talla.

A list of local U.S. police departments contributing license plate data to the database, to which ICE has access (Image: ACLU/supplied)

Other police departments were named as partners that actively feed data into the ICE-accessible database, like Upland, Merced and Union City — three cities in California, which in 2018 passed state-wide laws that offer sanctuary to immigrants who might be in the country illegally or otherwise subject to deportation by ICE. The laws prohibit law enforcement in the state from sharing of license plate data with federal agencies, said Talla.

When reached, Union City Police Department chief Victor Derting did not comment. Spokespeople for Upland and Merced police departments did not respond to a request for comment.

The ACLU called on the immediate end to the license plate information sharing.

The documents also revealed how ICE initially considered trying to keep the database a secret, arguing that disclosing the capability would “almost immediately diminish its effectiveness as a law enforcement tool.”

Amid a controversial and questionable national emergency declared by the Trump administration, ICE remains a divisive agency more than ever. Last year, 19 of the top ICE investigators that investigate serious criminal cases, like drug smuggling and sex trafficking rings, called on the government to distance their work from ICE’s enforcement and removal operations unit, which investigates immigration violations and handles deportations.

In January, TechCrunch revealed dozens of ALPR cameras are still exposed on the internet — many of which are accessible without a password.

News Source = techcrunch.com

Flight-hailing startup BlackBird raises $10 million to replace driving with flying

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The origin story of BlackBird, a startup that links travelers to planes and commercial pilots through an app, didn’t begin with air travel. It was prompted by car sickness.

BlackBird CEO and founder Rudd Davis, who was getting his pilot’s license at the time, asked his flight instructor if he would fly his family to Tahoe because his son gets terribly sick every time they traveled by car. What Rudd discovered was an incredible experience that was far more affordable than he realized. 

Davis launched the company in 2016 and has spent the past two years honing in on the business model as well as adding commercial pilots and members. Now, with fresh capital from New Enterprise Associates, BlackBird is ready to spread its wings. 

The company announced Tuesday it has raised $10 million in a Series A round led by NEA. NEA partner Jonathan Golden, who previously worked at Airbnb, has joined the BlackBird board of directors alongside Francoise Brougher of Pinterest, Square and Google, and Andrew Swain, who also is from Airbnb.

BlackBird has also hired Brian Hsu, who spent a decade at eBay and most recently was vice president of supply at Lyft, as chief operating officer. Davis is counting on Hsu, who has experience scaling marketplaces, to help BlackBird expand its membership and reach.

 

The company will use its new injection of capital to scale up, in terms of users, pilots and employees.

BlackBird currently has more than 700 commercial pilots who fly passengers between 50 and 500 miles from and within California. For now, Davis said this is a self-imposed geographic restriction.

“We’re trying to build up density and build up the network and optimize it before we start replicating it to other geographies,” Davis said.

It does face challenges. BlackBird has to find that price-per-seat sweet spot, which is largely driven by how many users and pilots are on the platform. Seats can be around $80 or upwards of $900, depending on the route, pilot availability and demand. And BlackBird must fight misconceptions of what and who the platform is designed for.

“A lot of people have looked at this space before, and really have kind of come up empty handed,” said Golden, who was a seed investor in BlackBird before joining NEA.

What makes BlackBird so compelling, Golden added, is that it’s not about luxury travel, but instead about how to actually replace driving through flights, which is really compelling.

“When most people think about kind of flying non-commercially, they think about huge jets with couches and for billionaires,” Davis said.And that is not the entirety of general aviation; there’s a huge aspect of aviation that is flying in smaller planes. It just hasn’t really been as accessible.”

News Source = techcrunch.com

Transportation Weekly: Waymo unleashes laser bear, Bird spreads its wings, Lyft tightens its belt

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Welcome back to Transportation Weekly; I’m your host Kirsten Korosec, senior transportation reporter at TechCrunch . This is the fifth edition of our newsletter and we love the reader feedback. Keep it coming.

Never heard of TechCrunch’s Transportation Weekly? Catch up here, here and here. As I’ve written before, consider this a soft launch. Follow me on Twitter @kirstenkorosec to ensure you see it each week. (An email subscription is coming). 

This week, we explore the world of light detection and ranging sensors known as LiDAR, young drivers, trouble in Barcelona, autonomous trucks in California, and China among other things.


ONM …

There are OEMs in the automotive world. And here, (wait for it) there are ONMs — original news manufacturers. (Cymbal clash!) This is where investigative reporting, enterprise pieces and analysis on transportation lives.

This week, we’re going to put our on analysis hats as we explore the world of LiDAR, a sensor that measures distance using laser light to generate highly accurate 3D maps of the world around the car. LiDAR is considered by most in the self-driving car industry (Tesla CEO Elon Musk being one exception) a key piece of technology required to safely deploy robotaxis and other autonomous vehicles.

There are A LOT of companies working on LiDAR. Some counts track upwards of 70. For years now, Velodyne has been the primary supplier of LiDAR sensors to companies developing autonomous vehicles. Waymo, back when it was just the Google self-driving project, even used Velodyne LiDAR sensors until 2012.

Dozens of startups have sprung up with Velodyne in its sights. But now Waymo has changed the storyline.

To catch you up: Waymo announced this week that it will start selling its custom LiDAR sensors — the technology that was at the heart of a trade secrets lawsuit last year against Uber.

Waymo’s entry into the market doesn’t necessarily upend other companies’ plans. Waymo is going to sell its short range LiDAR, called Laser Bear Honeycomb, to companies outside of self-driving cars. It will initially target robotics, security and agricultural technology.

It does put pressure on startups, particularly those with less capital or those targeting the same customer base. Pitchbook ran the numbers for us to determine where the LiDAR industry sits at the moment. There are two stories here: there are a handful of well capitalized startups and we may have reached “peak” LiDAR. Last year, there were 28 VC deals in LiDAR technology valued at $650 million. The number of deals was slightly lower than in 2017, but the values jumped by nearly 34 percent.

The top global VC-backed LiDAR technology companies (by post valuation) are Quanergy, Velodyne (although mostly corporate backed), Aurora (not self-driving company Aurora Innovation), Ouster, and DroneDeploy. The graphic below, also courtesy of Pitchbook, shows the latest figures as of January 31, 2019.

Dig In

Researchers discovered that two popular car alarm systems were vulnerable to a manipulated server-side API that could be abused to take control of an alarm system’s user account and their vehicle.

The companies — Russian alarm maker Pandora and California-based Viper (or Clifford in the U.K.) — have fixed the  security vulnerabilities that allowed researchers to remotely track, hijack and take control of vehicles with the alarms installed. What does this all mean?

Our in-house security expert and reporter Zack Whittaker digs in and gives us a reality check. Follow him @zackwhittaker.

Since the first widely publicized car hack in 2015 proved hijacking and controlling a car was possible, it’s opened the door to understanding the wider threat to modern vehicles.

Most modern cars have internet connectivity, making their baseline surface area of attack far greater than a car that doesn’t. But the effort that goes into remotely controlling a vehicle is difficult and convoluted, and the attack — often done by chaining together a set of different vulnerabilities — can take weeks or even longer to develop.

Keyfob or replay attacks are far more likely than say remote attacks over the internet or cell network. A keyfob sends an “unlock” signal, a device captures that signal and replays it. By replaying it you can unlock the car.

This latest car hack, featuring flawed third-party car alarms, was far easier to exploit, because the alarm systems added a weakness to the vehicles that weren’t there to begin with. Car makers, with vast financial and research resources, do a far greater job at securing their vehicle than the small companies that focus on functionality over security. For now, the bigger risk comes from third parties in the automobile space, but the car makers can’t afford to drop their game either.


A little bird …

We hear a lot. But we’re not selfish. Let’s share.

blinky-cat-bird

The California Department Motor Vehicles is the government body that regulates autonomous vehicle testing on public roads. The job of enforcement falls to the California Highway Patrol.

In an effort to gauge the need for more robust testing guidelines, the California Highway Patrol decided to hold an event at its headquarters in Sacramento. Eight companies working on autonomous trucking technology were invited. It was supposed to be a large event with local and state politicians in attendance. And it was supposed to validate autonomous trucking as an emerging industry.

There’s just one problem: only one AV trucking company is willing and able to complete this course. We hear that this AV startup actually already went ahead and completed the test course.

The California Highway Patrol has postponed event, for now, presumably until more companies can join.

Got a tip or overheard something in the world of transportation? Email me or send a direct message to @kirstenkorosec.


Deal of the week

Instead of highlighting one giant deal, let’s step back and take a broader view of mobility this week. The upshot: 2018 saw a decline in total investments in the sector and money moved away from ride-hailing and towards two-wheeled transportation.

According to new research from EY, mobility investments in 2018 reached $39.1 billion, down from $55.2 billion in the previous year. (The figures EY provided was through November 2018).

Ride-hailing companies raised $7.1 billion in 2018, a 73 percent decline from the previous year when $26.7 billion poured into this sector.

Investors, it seems, are shifting their focus to other business models, notably first and last-mile connectivity. EY estimates $7 billion was invested in two-wheeler mobility companies such as bike-sharing and electric scooters in 2018. The U.S. and China together have contributed to more than 80 percent of overall two-wheeler mobility investments this year alone, according to EY research shared with TechCrunch.

Other deals:


Snapshot

Let’s talk about Generation Z, that group of young people born 1996 to the present, and one startup that is focused on turning that demographic into car owners.

There’s lots of talk and hand wringing about young people choosing not to get a driver’s license, or not buying a vehicle. In the UK, for instance, about 42 percent of young drivers aged 17 to 24, hold a driver’s license. That’s about 2.7 million people, according to the National Travel Survey 2018 (NTS) of the UK government’s department of transport. An additional 2.2 million have a provisional or learner license. Combined, that amounts to about 13 percent of the car driving population of the UK.

In the UK, evidence suggests that a rise in motoring costs have discouraged young people from learning. And there lies one opportunity that a new startup called Driver1 is targeting.

Driver 1 is a car subscription service designed exclusively for first car drivers aged 17 to 24. The company has been in stealth mode for about a year and is just now launching.

“The young driver market is being underserved by the car industry, Driver1 founder Tim Hammond told TechCrunch. “And primarily it’s the financing that’s not available for that age group. It’s also something that’s not really affordable for any of the car subscription models like Fair.com and it’s not suitable for the OEM subscription services either financially or from an age perspective for young drivers.”

The company’s own research has found this group wants a newer car for 12 to 15 months.

“The car is the extension of their device,” Hammond said, noting these drivers don’t want the old junkers. “They want their iPhones and they want the car that goes with it.”

The company is working directly with leasing companies — not dealerships — to provide young drivers with 3 to 5-year-old cars that have lost 60 percent or so of their value. Driver1 is targeting under $120 a month for the customer and has a partnership with remarketing company Manheim, which is owned by Cox Automotive.

The startup is focused on the UK for now and has about 600 members who have reserved their cars for purchase. Driver1 is aiming to capture about 10 percent of the 1 million or so young people in the UK who pass their learners permit each year. The company plans it expand to France and other European countries in the fall.


Tiny but mighty micromobility

Bird Rocking Out GIF - Find & Share on GIPHY

Ca-caw, ca-caw! That’s the sound of Bird gearing up to launch Bird Platform in New Zealand, Canada and Latin America in the coming weeks. The platform is part of Bird’s mission to bring its scooters across the world “and empower local entrepreneurs in regions where we weren’t planning to launch to run their own electric-scooter sharing program with Bird’s tech and vehicles,” Bird CEO Travis VanderZanden told TechCrunch.

MRD’s two cents: Bird Platform seems like a way for Bird to make extra cash without having to do any of the work i.e. charging the vehicles, maintaining them and working with city officials to get permits. Smart!

Meanwhile, the dolla dolla bills keep pouring into micromobility. European electric scooter startup Voi Technology raised an additional $30 million in capital. That was on top of a $50 million Series A round just three months ago.

Oh, and because micromobility isn’t just for startups, Volkswagen decided to launch a kind of weird-looking electric scooter in Geneva. Because, why not?

Megan Rose Dickey

One more thing …

Lyft is trimming staff to prepare for its IPO. TechCrunch’s Ingrid Lunden learned that the company has laid off about 50 staff in its bike and scooter division. It appears most of these folks are people who joined the Lyft through its acquisition of  electric bike sharing startup Motivate a deal that closed about three months ago.


Notable reads

It’s probably not smart to suggest another newsletter, but if you haven’t checked out Michael Dunne’s  The Chinese Are Coming newsletter, you should. Dunne has a unique perspective on what’s happening in China, particularly as it related to automotive and newer forms of mobility such as ride-hailing. One interesting nugget from his latest edition: there are more than 20 other new electric vehicle makers in China.

“Most will fall away within the next 3 to 4 years as cash runs out,” Dunne predicts.

Other quotable notables:

Here’s a fun read for the week. TechCrunch’s Lucas Matney wrote about a YC Combinator startup Jetpack Aviation.The startup has launched pre-orders this week for the moonshot of moonshots, the Speeder, a personal vertical take-off and landing vehicle with a svelte concept design that looks straight out of Star Wars or Halo.


Testing and deployments

Spanish ride-hailing firm Cabify is back operating in Barcelona, Spain despite issuing dire warnings that new regulations issued by local government would crush its business and force it to fire thousands of drivers and leave forever. Turns out forever is one month.

The Catalan Generalitat issued a decree last month imposing a wait time of at least 15 minutes between a booking being made and a passenger being picked up. The policy was made to ensure taxis and ride-hailing firms are not competing for the same passengers, following a series of taxi strikes, which included scenes of violence. Our boots on the ground reporter Natasha Lomas has the whole story.

Sure, Barcelona is just one city. But what happened in Barcelona isn’t an isolated incident. The early struggles between conventional taxis and ride-hailing operations might be over, but that doesn’t mean the matter has been settled altogether.

And it’s not likely to go away. Once, robotaxis actually hit the road en masse — and yes, that’ll be awhile — these same struggles will pop up again.

Other deployments, or, er, retreats ….

Bike share pioneer Mobike retreats to China

On the autonomous vehicle front:

China Post, the official postal service of China, and delivery and logistics companies Deppon Express, will begin autonomous package delivery services in April. The delivery trucks will operate on autonomous driving technologies developed by FABU Technology, an AI company focused on intelligent driving systems.


On our radar

There is a lot of transportation-related activity this month. Come find me.

SXSW in Austin: TechCrunch will be at SXSW. And there is a lot of mobility action here. Aurora CEO and co-founder Chris Urmson was on stage Saturday morning with Malcolm Gladwell. Mayors from a number of U.S. cities as well as companies like Ford and Mercedes are on the scene. Here’s where I’ll be. 

  • 2 p.m. to 6:30 p.m. (local time) March 9 at the Empire Garage for the Smart Mobility Summit, an annual event put on by Wards Intelligence and C3 Group. The Autonocast, the podcast I co-host with Alex Roy and Ed Niedermeyer, will also be on hand.
  • 9:30 a.m. to 10:30 a.m. (local time) March 12 at the JW Marriott. The Autonocast and founding general partner of Trucks VC, Reilly Brennan will hold a SXSW podcast panel on automated vehicle terminology and other stuff.
  • 3:30 p.m (local time) over at the Hilton Austin Downtown, I’ll be moderating a panel Re-inventing the Wheel: Own, Rent, Share, Subscribe. Sherrill Kaplan with Zipcar, Amber Quist, with Silvercar and Russell Lemmer with Dealerware will join me on stage.
  • TechCrunch is also hosting a SXSW party from 1 pm to 4 pm Sunday, March 10, 615 Red River St., that will feature musical guest Elderbrook. RSVP here

Nvidia GTC

TechCrunch (including yours truly) will also be at Nvidia’s annual GPU Technology Conference from March 18 to 21 in San Jose.

Self Racing Cars

The annual Self Racing Car event will be held March 23 and March 24 at Thunderhill Raceway near Willows, California.

There is still room for participants to test or demo their autonomous vehicles, drive train innovation, simulation, software, teleoperation, and sensors. Hobbyists are welcome. Sign up to participate or drop them a line at contact@selfracingcars.com.

Thanks for reading. There might be content you like or something you hate. Feel free to reach out to me at kirsten.korosec@techcrunch.com to share those thoughts, opinions or tips. 

Nos vemos la próxima vez.

News Source = techcrunch.com

Taxing your privacy

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Data collection through mobile tracking is big business and the potential for companies helping governments monetize this data is huge. For consumers, protecting yourself against the who, what and where of data flow is just the beginning. The question now is: How do you ensure your data isn’t costing you money in the form of new taxes, fees and bills?  Particularly when the entity that stands to benefit from this data — the government — is also tasked with protecting it?

The advances in personal data collection are a source of growing concern for privacy advocates, but whereas most fears tend to focus on what type of data is being collected, who’s watching and to whom is your data being sold, the potential for this same data to be monetized via auditing and compliance fees is even more problematic.

The fact is, you don’t need massive infrastructure to now track/tax businesses and consumers. State governments and municipalities have taken notice.

The result is a potential multi-billion dollar per-year business that, with mobile tracking technology, will only grow exponentially year over year.

Yet, while the revenue upside for companies helping smart cities (and states) with taxing and tolling is significant, it is also rife with contradictions and complications that could, ultimately, pose serious problems to those companies’ underlying business models and for the investors that bet heavily on them.

Photo courtesy of Getty Images/chombosan

The most common argument when privacy advocates bring up concerns around mobile data collection is that consumers almost always have the control to opt out. When governments utilize this data, however, that option is not always available. And the direct result is the monetization of a consumer’s privacy in the form of taxes and tolls. In an era where states like California and others are stepping up as self-proclaimed defenders of citizen privacy and consent, this puts everyone involved in an awkward position — to say the least.

The marriage of smart cities and next-gen location tracking apps is becoming more commonplace.  AI, always-on data flows, sensor networks and connected devices are all being employed by governments in the name of sustainable and equitable cities as well as new revenue.

New York, LA and Seattle are all implementing (or considering implementing) congestion pricing that would ultimately rely on harvesting personal data in some form or another. Oregon, which passed the first gas tax in 1919, began it’s OreGo Program two years ago utilizing data that measured miles driven to levy fees on drivers so as to address infrastructure issues with its roads and highways.

Image Courtesy of Shutterstock

As more state and local governments look to emulate these kinds of policies the revenue opportunity for companies and investors harvesting this data is obvious.  Populus, (and a portfolio company) a data platform that helps cities manage mobility, captures data from fleets like Uber and Lyft to help cities set policy and collect fees.

Similarly, ClearRoad  is a “road pricing transaction processor” that leverages data from vehicles to help governments determine road usage for new revenue streams.  Safegraph, on the other hand, is a company that daily collects millions of trackers from smartphones via apps, APIs and other delivery methods often leaving the business of disclosure up to third parties. Data like this has begun to make its way into smart city applications which could impact industries as varied as the real estate market to the Gig Economy.

“There are lots of companies that are using location technology, 3D scanning, sensor tracking and more.  So, there are lots of opportunities to improve the effectiveness of services and for governments to find new revenue streams,” says Paul Salama, COO of ClearRoad . “If you trust the computer to regulate, as opposed to the written code, then you can allow for a lot more dynamic types of regulation and that extends beyond vehicles to noise pollution, particulate emissions, temporary signage, etc.”

While most of these platforms and technologies endeavor to do some public good by creating the baseline for good policy and sustainable cities they also raise concerns about individual privacy and the potential for discrimination.  And there is an inherent contradiction for states ostensibly tasked with curbing the excesses of data collection then turning around and utilizing that same data to line the state’s coffers, sometimes without consent or consumer choice.

Image courtesy Bryce Durbin

“People care about their privacy and there are aspects that need to be hashed out”, says Salama. “But we’re talking about a lot of unknowns on that data governance side.  There’s definitely going to be some sort of reckoning at some point but it’s still so early on.”

As policy makers and people become more aware of mobile phone tracking and the largely unregulated data collection associated with it, the question facing companies in this space is how to extract all this societally beneficial data while balancing that against some pretty significant privacy concerns.

“There will be options,” says Salama.  “An example is Utah which, starting next year, will offer electric cars the option to pay a flat fee (for avoiding gas taxes) or pay-by-the-mile.  The pay-by-the-mile option is GPS enabled but it also has additional services, so you pay by your actual usage.”

Ultimately, for governments, regulation plus transparency seems the likeliest way forward.

Image courtesy Getty Images

In most instances, the path to the consumer or tax payer is either through their shared economy vehicle (car, scooter, bike, etc.) or though their mobile device.  While taxing fleets is indirect and provides some measure of political cover for the governments generating revenue off of them, there is no such cover for directly taxing citizens via data gathered through mobile apps.

The best case scenario to short circuit these inherent contradictions for governments is to actually offer choice in the form of their own opt-in for some value exchange or preferred billing method, such as Utah’s opt-in as an alternative way to pay for road use vs. gas tax.   It may not satisfy all privacy concerns, particularly when it is the government sifting through your data, but it at least offers a measure of choice and a tangible value.

If data collection and sharing were still mainly the purview of B2B businesses and global enterprises, perhaps the rising outcry over the methods and usage of data collection would remain relatively muted. But as data usage seeps into more aspects of everyday life and is adopted by smart cities and governments across the nation questions around privacy will invariably get more heated, particularly when citizen consumers start feeling the pinch in their wallet.

As awareness rises and inherent contradictions are laid bare, regulation will surely follow and those businesses not prepared may face fundamental threats to their business models that ultimately threaten their bottom line.

News Source = techcrunch.com

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