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May 27, 2019
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Leak reveals Uber’s $9.99 unlimited delivery Eats Pass

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What’s the cord-cutting equivalent to ditching your kitchen? Uber’s upcoming subscription to unlimited free food delivery. Uber is preparing to launch the $9.99 per month Uber Eats Pass, according to code hidden in Uber’s Android app.

The subscription would waive Uber’s service fee that’s typically 15 percent of your order cost. Given that’s often $5 or more, users stand to save a lot if they order in frequently. But Uber could still earn money on menu item markups, cover costs with a flat order fee that protects against someone ordering a single taco, and most importantly, build loyalty and scale at a time of intense food delivery competition.

The Uber Eats Pass was first spotted by Jane Manchun Wong, the notorious reverse engineering specialist who’s become a frequent TechCrunch tipster. She managed to generate screenshots from Uber’s Android app code the reveals a prototype of the feature. “Get free delivery, any restaurant, any time” is says, showing the amount of money you could have or already saved.

A Uber spokesperson did not dispute the legitimacy of the findings and told TechCrunch “We’re always thinking about new ways to enhance the Eats experience.” They declined to provide further details, which could hint that a launch is imminent but some details are still subject to change. For now we don’t know exactly what perks come with an Eats Pass or where it will be launching first.

At $9.99 per month, the Uber Eats Pass would cost the same and work similarly to Postmates Unlimited and DoorDash DashPass. If they all seem like good deals, you see why they’re less about immediate revenue and more about customer lock-in. You’re a lot less likely to order GrubHub or Caviar if you’ve already pre-paid to cover your Uber Eats delivery costs. And whichever apps emerge from this battle will have instituted the scale and steady behavior to raise prices or just enjoy large lifetime value from each subscriber.

Exploring new business opportunities could help perk up Uber’s share price which closed at $41.50 today two weeks after IPOing at an opening price of $42. There are fears that intense competition across both ride sharing and food delivery could make for an expensive road ahead for the newly public company. Any way it can gain an edge on its rivals keep users from straying to them is important. The logistics giant is already experimenting with allowing restaurants to offer discounts in exchange for promoted placement in the app, which is the first step to Uber becoming an ads company where businesses pay for extra exposure.

If Uber combined Eats Pass with its car service subscription Ride Passes, you have the foundation for a sort of Uber Prime experience — one where you pay an upfront subscription fee that scores you perks and discounts but also makes you likely to spend a lot more on Uber. That bundle could be even more central to Uber than Amazon, which has few direct rivals in the west. People will need to eat and get around for the foreseeable future. Subsidizing loyalty now could be costly in the short-term, but poise Uber for years of lucrative business down the line.

Amazon now sells flight tickets in India

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Indians can already use Amazon to pay for their mobile bills and borrow money to purchase items, but now there’s more. This week, the ecommerce giant quietly introduced an additional feature to its shopping site: flight tickets.

Amazon has partnered with local travel service Cleartrip to add flight booking option to its payment service — Amazon Pay — in India, according to an FAQ posted on its website. The feature, first spotted by news outlet Skift, is available on its Indian website and app.

The addition of plane ticketing underscores Amazon’s growing interest in expanding its payment service in India, which is both one of its fastest-growing markets and a country it uses to test new ideas.

Since launching Amazon Pay in India in late 2016, the company has added a myriad of features to the service. Amazon Pay today allows Indians to top up their phones, cable TV subscriptions, and pay for electricity and water bills. Last month, Amazon announced support for peer-to-peer (P2P) money transfers for users of its Android app. Amazon also plans to soon let users order food from its website, local media reported last month.

The company has also inked deals with other top firms such as movie ticketing site BookMyShow, food delivery startup Swiggy, and bus ticketing startup Redbus to embed Amazon Pay into many popular Indian services. To spur its adoption, the company has offered cashback incentives to those who checkout using Amazon Pay.

The flight ticketing option is not much different. The company is promising a one-time cashback of up to Rs 2,000 ($28.20) for each first booking.

The push comes as many local companies in India and those that operate in the nation begin to mold their apps into so-called super apps. Top mobile wallet service Paytm has expanded to add a number of financial services, including as of this week a credit card, in recent years. India’s ride-hailing service Ola also entered the credit card business this week

Truecaller, an app that lets users screen for spam calls, has added messaging and payment features in India. The bundling often seems big names work together. For example, Paytm recently partnered with Zomato to test food ordering option on the mobile wallet app, a source with knowledge of the partner told TechCrunch.

Amazon’s interest in flight ticketing option in India should also help its partner ClearTrip gain a larger foothold in the nation. The company competes with giant MakeMyTrip, Booking.com, and Paytm . Google also offers flights in India, though, at the moment, that is limited to search. When it comes to transactions, users are directed to ticketing websites to complete their purchase.

India’s most popular services are becoming super apps

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Truecaller, an app that helps users screen strangers and robocallers, will soon allow users in India, its largest market, to borrow up to a few hundred dollars in the nation.

The crediting option will be the fourth feature the nine-year-old app adds to its service in the last two years. So far it has added to the service the ability to text, record phone calls and mobile payment features, some of which are only available to users in India. Of the 140 million daily active users of Truecaller, 100 million live in India.

The story of the ever-growing ambition of Truecaller illustrates an interesting phase in India’s internet market that is seeing a number of companies mold their single-functioning app into multi-functioning so-called super apps.

Inspired by China

This may sound familiar. Truecaller and others are trying to replicate Tencent’s playbook. The Chinese tech giant’s WeChat, an app that began life as a messaging service, has become a one-stop solution for a range of features — gaming, payments, social commerce and publishing platform — in recent years.

WeChat has become such a dominant player in the Chinese internet ecosystem that it is effectively serving as an operating system and getting away with it. The service maintains its own app store that hosts mini apps and lets users tip authors. This has put it at odds with Apple, though the iPhone-maker has little choice but to make peace with it.

For all its dominance in China, WeChat has struggled to gain traction in India and elsewhere. But its model today is prominently on display in other markets. Grab and Go-Jek in Southeast Asian markets are best known for their ride-hailing services, but have begun to offer a range of other features, including food delivery, entertainment, digital payments, financial services and healthcare.

The proliferation of low-cost smartphones and mobile data in India, thanks in part to Google and Facebook, has helped tens of millions of Indians come online in recent years, with mobile the dominant platform. The number of internet users has already exceeded 500 million in India, up from some 350 million in mid-2015. According to some estimates, India may have north of 625 million users by year-end.

This has fueled the global image of India, which is both the fastest growing internet and smartphone market. Naturally, local apps in India, and those from international firms that operate here, are beginning to replicate WeChat’s model.

Founder and chief executive officer (CEO) of Paytm Vijay Shekhar Sharma speaks during the launch of Paytm payments Bank at a function in New Delhi on November 28, 2017 (AFP PHOTO / SAJJAD HUSSAIN)

Leading that pack is Paytm, the popular homegrown mobile wallet service that’s valued at $18 billion and has been heavily backed by Alibaba, the e-commerce giant that rivals Tencent and crucially missed the mobile messaging wave in China.

Commanding attention

In recent years, the Paytm app has taken a leaf from China with additions that include the ability to text merchants; book movie, flight and train tickets; and buy shoes, books and just about anything from its e-commerce arm Paytm Mall . It also has added a number of mini games to the app. The company said earlier this month that more than 30 million users are engaging with its games.

Why bother with diversifying your app’s offering? Well, for Vijay Shekhar Sharma, founder and CEO of Paytm, the question is why shouldn’t you? If your app serves a certain number of transactions (or engagements) in a day, you have a good shot at disrupting many businesses that generate fewer transactions, he told TechCrunch in an interview.

At the end of the day, companies want to garner as much attention of a user as they can, said Jayanth Kolla, founder and partner of research and advisory firm Convergence Catalyst.

“This is similar to how cable networks such as Fox and Star have built various channels with a wide range of programming to create enough hooks for users to stick around,” Kolla said.

“The agenda for these apps is to hold people’s attention and monopolize a user’s activities on their mobile devices,” he added, explaining that higher engagement in an app translates to higher revenue from advertising.

Paytm’s Sharma agrees. “Payment is the mote. You can offer a range of things including content, entertainment, lifestyle, commerce and financial services around it,” he told TechCrunch. “Now that’s a business model… payment itself can’t make you money.”

Big companies follow suit

Other businesses have taken note. Flipkart -owned payment app PhonePe, which claims to have 150 million active users, today hosts a number of mini apps. Some of those include services for ride-hailing service Ola, hotel booking service Oyo and travel booking service MakeMyTrip.

Paytm (the first two images from left) and PhonePe offer a range of services that are integrated into their payments apps

What works for PhonePe is that its core business — payments — has amassed enough users, Himanshu Gupta, former associate director of marketing and growth for WeChat in India, told TechCrunch. He added that unlike e-commerce giant Snapdeal, which attempted to offer similar offerings back in the day, PhonePe has tighter integration with other services, and is built using modern architecture that gives users almost native app experiences inside mini apps.

When you talk about strategy for Flipkart, the homegrown e-commerce giant acquired by Walmart last year for a cool $16 billion, chances are arch rival Amazon is also hatching similar plans, and that’s indeed the case for super apps.

In India, Amazon offers its customers a range of payment features such as the ability to pay phone bills and cable subscription through its Amazon Pay service. The company last year acquired Indian startup Tapzo, an app that offers integration with popular services such as Uber, Ola, Swiggy and Zomato, to boost Pay’s business in the nation.

Another U.S. giant, Microsoft, is also aboard the super train. The Redmond-based company has added a slew of new features to SMS Organizer, an app born out of its Microsoft Garage initiative in India. What began as a texting app that can screen spam messages and help users keep track of important SMSs recently partnered with education board CBSE in India to deliver exam results of 10th and 12th grade students.

This year, the SMS Organizer app added an option to track live train schedules through a partnership with Indian Railways, and there’s support for speech-to-text. It also offers personalized discount coupons from a range of companies, giving users an incentive to check the app more often.

Like in other markets, Google and Facebook hold a dominant position in India. More than 95% of smartphones sold in India run the Android operating system. There is no viable local — or otherwise — alternative to Search, Gmail and YouTube, which counts India as its fastest growing market. But Google hasn’t necessarily made any push to significantly expand the scope of any of its offerings in India.

India is the biggest market for WhatsApp, and Facebook’s marquee app too has more than 250 million users in the nation. WhatsApp launched a pilot payments program in India in early 2018, but is yet to get clearance from the government for a nationwide rollout. (It isn’t happening for at least another two months, a person familiar with the matter said.) In the meanwhile, Facebook appears to be hatching a WeChatization of Messenger, albeit that app is not so big in India.

Ride-hailing service Ola too, like Grab and Go-Jek, plans to add financial services such as credit to the platform this year, a source familiar with the company’s plans told TechCrunch.

“We have an abundance of data about our users. We know how much money they spend on rides, how often they frequent the city and how often they order from restaurants. It makes perfect sense to give them these valued-added features,” the person said. Ola has already branched out of transport after it acquired food delivery startup Foodpanda in late 2017, but it hasn’t yet made major waves in financial services despite giving its Ola Money service its own dedicated app.

The company positioned Ola Money as a super app, expanded its features through acquisition and tie ups with other players and offered discounts and cashbacks. But it remains behind Paytm, PhonePe and Google Pay, all of which are also offering discounts to customers.

Integrated entertainment

Super apps indeed come in all shapes and sizes, beyond core services like payment and transportation — the strategy is showing up in apps and services that entertain India’s internet population.

MX Player, a video playback app with more than 175 million users in India that was acquired by Times Internet for some $140 million last year, has big ambitions. Last year, it introduced a video streaming service to bolster its app to grow beyond merely being a repository. It has already commissioned the production of several original shows.

In recent months, it has also integrated Gaana, the largest local music streaming app that is also owned by Times Internet. Now its parent company, which rivals Google and Facebook on some fronts, is planning to add mini games to MX Player, a person familiar with the matter said, to give it additional reach and appeal.

Some of these apps, especially those that have amassed tens of millions of users, have a real shot at diversifying their offerings, analyst Kolla said. There is a bar of entry, though. A huge user base that engages with a product on a daily basis is a must for any company if it is to explore chasing the super app status, he added.

Indeed, there are examples of companies that had the vision to see the benefits of super apps but simply couldn’t muster the requisite user base. As mentioned, Snapdeal tried and failed at expanding its app’s offerings. Messaging service Hike, which was valued at more than $1 billion two years ago and includes WeChat parent Tencent among its investors, added games and other features to its app, but ultimately saw poor engagement. Its new strategy is the reverse: to break its app into multiple pieces.

“In 2019, we continue to double down on both social and content but we’re going to do it with an evolved approach. We’re going to do it across multiple apps. That means, in 2019 we’re going to go from building a super app that encompasses everything, to Multiple Apps solving one thing really well. Yes, we’re unbundling Hike,” Kavin Mittal, founder and CEO of Hike, wrote in an update published earlier this year.

And Reliance Jio, of course

For the rest, the race is still on, but there are big horses waiting to enter to add further competition.

Reliance Jio, a subsidiary of conglomerate Reliance Industry that is owned by India’s richest man, Mukesh Ambani, is planning to introduce a super app that will host more than 100 features, according to a person familiar with the matter. Local media first reported the development.

It will be fascinating to see how that works out. Reliance Jio, which almost single-handedly disrupted the telecom industry in India with its low-cost data plans and free voice calls, has amassed tens of millions of users on the bouquet of apps that it offers at no additional cost to Jio subscribers.

Beyond that diverse selection of homespun apps, Reliance has also taken an M&A-based approach to assemble the pieces of its super app strategy.

It bought music streaming service Saavn last year and quickly integrated it with its own music app JioMusic. Last month, it acquired Haptik, a startup that develops “conversational” platforms and virtual assistants, in a deal worth more than $100 million. It already has the user bases required. JioTV, an app that offers access to over 500 TV channels; and JioNews, an app that additionally offers hundreds of magazines and newspapers, routinely appear among the top apps in Google Play Store.

India’s super app revolution is in its early days, but the trend is surely one to keep an eye on as the country moves into its next chapter of internet usage.

Google to allow users to pay for Android apps using cash

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Today, the Android platform sees more app downloads than iOS, but Apple’s App Store continually dominates in terms of revenue. Now, Google is aiming to narrow the revenue gap by introducing a new way for users in emerging markets to pay for apps: with cash. The company today announced it’s launching “pending transactions,” which offers users different ways to pay that don’t require a credit card or any other traditional form of online payment.

Lack of access to credit is one of many reasons why users in emerging markets gravitate towards free-to-play and ad-supported games and applications, instead of paid downloads and in-app purchases.

To address this problem, Google has already rolled out other payment options over the years — like support for eWallets, UPI in India, and carrier billing, for example. Over the past year, it’s added 20 more carrier billing partnerships, bringing the total number of carriers supporting this option to over 170 worldwide, to reaching over a billion users through this one billing option.

But carrier billing isn’t a universal option, and it’s not always a preferred one.

To reach those users who rely more on cash, Google is now rolling out another payment option.

“We know that emerging markets are a key area of growth for you all, which is why we’re excited to announce ‘pending transactions,’” said Aurash Mahbod, the Director of Engineering responsible for the Play Store and Games on Google Play, speaking at the Google I/O Developer conference today.

“This is a new class of delayed form of payment – like cash, bank transfer and direct debit,” he explained.

The option gives an Android user the ability to choose an alternative payment method at checkout when paying for an application or in-app purchase. Instead of charging an attached credit card, for instance, the user can instead opt to receive a payment code which they can use to pay for their purchase using cash at a nearby store.

Once at the store, the user shows the payment code to the cashier and pays. Within 10 minutes after completing the transaction, the user will receive their purchase and an email with their proof of payment. (The fine print notes this can take up to 48 hours, at times, however).

While this makes paying for apps and updates easier for cash-only Android users, if they later want a refund, they won’t get cash back — only Play Store credit.

 

The Pending Transactions option is one of several updates arriving in the new Google Play Billing Library (version 2.0), but is the most interesting in terms of what it means for increasing the number of paid transactions in emerging markets.

Another notable update is the option, “Subscribe & Install”, which offers users a free trial subscription at the same time they install the app — all in one click of a button.

This feature is currently available in Early Access, and partners who have used the option are seeing an average of 34% growth in paid subscribers, Google said.

The Google Play Billing Library 2.0 — now the official way to integrate apps with Google Play Billing —  is available now in Java, with C++ and Kotlin support coming soon.

More information about the new options will be posted to the Android Developers site here.

YSplit wants to make it so you never owe your friends money again

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When you live with roommates or go out often with friends, it’s common for someone to front the payment — be that for utilities, the cable bill, rent or the restaurant bill — and have everyone else pay them back via cash, Venmo or Apple Pay. But YSplit, a company launching out of Y Combinator, wants to make it so you never have to owe anyone ever again.

It works by creating a virtual card that automatically deducts money from everyone’s bank account. So, the person who usually fronts the payment would instead use YSplit’s virtual card.

“We front the payment and as we’re fronting payment, we’re ensuring everyone on the card has enough money,” YSplit co-founder Tunde Alao told TechCrunch. “We authorize the payment and then charge everyone at the same time.”

YSplit is totally free to users but makes money through interchange fees. Since the payment happens through YSplit’s card, it’s able to charge the utility provider between 1.3 to 2 percent of the transaction.

YSplit spun out of Alao and his co-founders first startup, Cluttr. While the three of them were interning at Google, they shared a house and came up with the idea to help them organize their shared finances.

“We created something to track how much we owed each other,” Alao said. “It got quite popular in the U.K. but we realized we’re not solving any problem by helping people track how much they owe each other. We wanted to stop people from owing each other entirely.”

Cluttr, which Alao said was similar to Splitwise, was basically Splitwise plus scheduling. Splitwise allows you to easily track bills and other expenses with friends. There are numerous other apps that make it easy to track how much you owe someone, but few — if any — that let so easily split the expenses upfront.

Ysplit is currently in closed beta with about 40 households using the product. After Y Combinator demo day next week, YSplit will roll out the app to an additional 500 people. YSplit is initially focused on utility payments for roommates but plans to add additional service providers to down the road.

“It scales into a lot of situations,” Alao said.

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