Facebook has been going hard after marketers' TV budgets, and with some success. Now, it's coming armed with research from Nielsen suggesting it's a better reach medium than TV for millennials and Hispanics coveted by so many marketers.
A wide-ranging study using Nielsen's Homescan panel of consumers and audience-measurement tools shows buying Facebook alone now reaches more of each group than running ads on the 10 most watched TV networks combined -- though it also shows that using both Facebook and TV combined reaches a far larger slice of both groups.
Millennials and Hispanics are two of the fastest growing and hence most coveted demographics for a variety of brands. They're also among the demos most likely to include families with children, particularly coveted by packaged-goods marketers selling everything from diapers to food for home use -- because families with kids buy more of each.
"If you're a packaged-goods marketer, that's a point of market entry that these people are now moving into, and the best way to reach them is through the device that's always with them, which is, of course, the smartphone," said Erin Sills, director-global consumer insights for Facebook.
Facebook was set to discuss the study in a blog post today after having shared a more detailed version with marketers at Advertising Week presentations last month.
The Nielsen study found that in a typical month, 12.2% of millennials can be reached on TV only (using the top 10 networks), vs. 14.2% who can only be reached on Facebook. Similarly 16.3% of U.S. Hispanics can only be reached on TV vs. 17.5% only on Facebook, the study found.
A far larger 69.3% slice of millennials and 61.2% of Hispanics can be reached using a combination of the two. But the Facebook-only audience accounts for $2.6 billion of millennials' packaged-goods spending and $3.9 billion of Hispanics' packaged-goods spending in just the first half of 2015 alone, according to the study.
"We need to keep in mind that Facebook is largely a mobile platform, and it's not that mobile is coming: Mobile is here," said Ms. Sills, in explaining the Facebook's reach.
The Facebook-only group was bigger than TV only despite the fact Americans still spend a lot more time watching TV than checking Facebook. The social network gets under five hours of weekly face time with users in U.S. And while millennials' TV time has been declining, they still spend close to 28 hours a week watching TV vs. 47 hours for boomers, according to Nielsen.
NOTE CREDIT: http://adage.com/article/ad-age-research/facebook-top-tv-reaching-millennials-hispanics/300811/
jueves, 3 de diciembre de 2015
miércoles, 2 de diciembre de 2015
50 Everyday Tasks Technology has Rendered Obsolete
A 2011 poll sought to find out the top things that people do not do anymore due to the steady march of technology. The study surveyed 3,000 adults and examined the impact of technology on human life over the last 30 years.
Getting photographs printed, public telephones and recording television onto physical media all emerged as activities that are dying out due to digital advancements. Visiting a travel agent also came high on the list, as better deals can be found and compared online in five minutes.
Most people choose to store their photos on hard drives or in cloud services these days. Smartphones have seen the death of directory enquiries and public phones. Paying bills can now be done automatically or with the touch of a button, as can most banking services. Text messaging and email has put the handwritten letter to the sword as well as the need to own a phone book.
Catch-up television and services such as Sky+ have removed the need to own VHS tapes or DVD recorders. The internet has eliminated a number of one essential book from the average home. Books such as encyclopaedias, dictionaries and phone books.
EBay, Gumtree and their ilk have driven a nail into the coffin of the traditional car boot sale or classified ads. Tablets and smartphones have removed the need for a daily newspaper. Whilst some people may still enjoy the feel of a physical newspaper, there is no way that printed media can keep up with the way in which digital news is constantly updated.
Also more or less gone the way of the dodo, is the need to get out maps to plan a car journey. Also gone is the need to have a navigator with loads of cumbersome maps unfolded in the car, trying to direct you around a strange location.
Nowadays you just pop the postcode of where you want to be into your TomTom or Garmin (other satellite navigation systems are available), or into Google Maps (other smartphone based navigation software is available, although we would not recommend using them) on your smartphone, and you will be directed straight to where you need to be.
Ring the cinema to find out times
Going into the travel agents to research a holiday
Record things using VHS
Dial directory enquiries
Use public telephones
Book tickets for events over the phone
Print photos
Put a classified ad in the shop window
Ring the speaking clock
Carry portable CD players
Write handwritten letters
Buy disposable cameras
Take plenty of change for pay phones
Make mix tapes
Pay bills at the post office
Use an address book
Check a map before or during car journey
Reverse charges in payphones
Go into the bank or building society to conduct your business
Buy TV listings
Own an encyclopaedia
Queue to get car tax in Post Office
Develop and send off for photographs
Read a hard copy of the Yellow Pages
Look up something in dictionary
Remember phone numbers/ Have a phone book
Watch videos
Have pen friends
Use a telephone directory
Use pagers
Fax things
Buy CD’s/ Have a CD collection
Pay by cheque
Make photo albums
Watch programmes at the time they are shown
Dial 1471 when you get home
Warm milk or other hot drinks on stove
Try on lots of pairs of shoes on high street
Hand wash clothes
Advertise in trading papers
Send love letters
Hand-write essays / school work
Buy flowers from a florist
Work out how to spell something yourself
Keep a personal diary
Send post cards
Buy newspapers
Hang washing out in winter
Keep printed bills or bank statements
Visit car boot sales
So, you have the results of the poll on what the public thinks are the top things that we do not do anymore due to digital technology. But, maybe you have thought of something that was not included? Is there something that you remember doing that has fallen by the wayside as technology has advanced? Please let us know in the comments below.
Also, it is worth noting that this survey was carried out in 2011. Whilst four years old can certainly still be considered recent in the field of research, it is also true that technology advances at a sometimes alarming rate. So, maybe things have changed in the four years since this question was fist asked. Please also let us know in the comments if a recent technological development has led to you abandoning an old habit, in favour of a more streamlined method.
NOTE CREDIT: http://www.markitwrite.com/50-everyday-tasks-technology-has-rendered-obsolete/
Getting photographs printed, public telephones and recording television onto physical media all emerged as activities that are dying out due to digital advancements. Visiting a travel agent also came high on the list, as better deals can be found and compared online in five minutes.
Death of Directory Enquiries
Catch-up television and services such as Sky+ have removed the need to own VHS tapes or DVD recorders. The internet has eliminated a number of one essential book from the average home. Books such as encyclopaedias, dictionaries and phone books.
Cessation of Classified
Also more or less gone the way of the dodo, is the need to get out maps to plan a car journey. Also gone is the need to have a navigator with loads of cumbersome maps unfolded in the car, trying to direct you around a strange location.
Nowadays you just pop the postcode of where you want to be into your TomTom or Garmin (other satellite navigation systems are available), or into Google Maps (other smartphone based navigation software is available, although we would not recommend using them) on your smartphone, and you will be directed straight to where you need to be.
The Full List:
Ring the cinema to find out times
Going into the travel agents to research a holiday
Record things using VHS
Dial directory enquiries
Use public telephones
Book tickets for events over the phone
Print photos
Put a classified ad in the shop window
Ring the speaking clock
Carry portable CD players
Write handwritten letters
Buy disposable cameras
Take plenty of change for pay phones
Make mix tapes
Pay bills at the post office
Use an address book
Check a map before or during car journey
Reverse charges in payphones
Go into the bank or building society to conduct your business
Buy TV listings
Own an encyclopaedia
Queue to get car tax in Post Office
Develop and send off for photographs
Read a hard copy of the Yellow Pages
Look up something in dictionary
Remember phone numbers/ Have a phone book
Watch videos
Have pen friends
Use a telephone directory
Use pagers
Fax things
Buy CD’s/ Have a CD collection
Pay by cheque
Make photo albums
Watch programmes at the time they are shown
Dial 1471 when you get home
Warm milk or other hot drinks on stove
Try on lots of pairs of shoes on high street
Hand wash clothes
Advertise in trading papers
Send love letters
Hand-write essays / school work
Buy flowers from a florist
Work out how to spell something yourself
Keep a personal diary
Send post cards
Buy newspapers
Hang washing out in winter
Keep printed bills or bank statements
Visit car boot sales
So, you have the results of the poll on what the public thinks are the top things that we do not do anymore due to digital technology. But, maybe you have thought of something that was not included? Is there something that you remember doing that has fallen by the wayside as technology has advanced? Please let us know in the comments below.
Also, it is worth noting that this survey was carried out in 2011. Whilst four years old can certainly still be considered recent in the field of research, it is also true that technology advances at a sometimes alarming rate. So, maybe things have changed in the four years since this question was fist asked. Please also let us know in the comments if a recent technological development has led to you abandoning an old habit, in favour of a more streamlined method.
NOTE CREDIT: http://www.markitwrite.com/50-everyday-tasks-technology-has-rendered-obsolete/
La nueva técnica de producir grafeno es 100 veces más barata
Obtienen grafeno de bajo coste con mejor rendimiento eléctrico y óptico que el producido con las técnicas tradicionales y con un coste 100 veces menor
El alto coste de producción del grafeno sigue siendo un escollo importante para este material llamado a revolucionar la electrónica, la telefonía móvil o el sector energético, entre otros. Pero un estudio reciente elaborado por investigadores escoceses de la Universidad de Glasgow, podría ser la clave para obtener grafeno low cost mucho más resistente con un coste hasta 100 veces más barato que con los métodos tradicionales.
Generalmente, la producción de grafeno requiere el uso de la deposición química de vapor o CVD. Un proceso químico de microfabricación utilizado en la industria de semiconductores para transformar los gases en películas delgadas de alta pureza y de alto rendimiento de materiales sólidos. En el caso del grafeno, se obtiene una fina capa de este material que se deposita sobre una superficie de cobre sometida previamente a un tratamiento especial. Sin embargo, el uso de esta base tratada de forma previa es la principal responsable del incremento de los costes totales de producción de este material maravilla.
Para mitigar el alto coste de estas láminas dentro del proceso de producción, el equipo de investigadores dirigido por el Dr. Ravinder Dahiya ha estado ensayando una nueva técnica que incorpora láminas de cobre comercial similares a las que se utilizan como electrodos negativos en las baterías de iones de litio. Según confirman los investigadores, la superficie ultra-lisa de este tipo de cobre proporciona una excelente base que no requiere de ningún tratamiento previo para favorecer la deposición de la fina capa de grafeno.
Este nuevo enfoque planteado por los de Glasgow reduce drásticamente los costes de producción de grafeno por deposición química de vapor, y para muestra un botón. Según los científicos, la sustitución de la base por el cobre comercial utilizado como electrodo negativo en las baterías de iones de litio supone un coste de 1 dólar por metro cuadrado. Un coste irrisorio en comparación con los 115 dólares por metro cuadrado del cobre especial utilizado en las técnicas actuales de CVD. Además, los investigadores también han descubierto un aspecto interesante del grafeno de bajo coste obtenido con esta nueva técnica, y es que el rendimiento eléctrico y óptico del material final supera con creces al del grafeno obtenido con las técnicas tradicionales.
Los responsables de este nuevo método confían que la futura producción en masa de grafeno low cost colaborará a que las especulaciones argumentadas por la gran mayoría de estudios, en torno en torno a los posibles campos de aplicación de este material prodigio, vean finalmente la luz.
Desde su descubrimeinto, el grafeno ha sido anunciado como un importante componente para el desarrollo de la electrónica de consumo, la mejora de la eficiencia en las soluciones de energía renovable, e incluso en el impulso de las telecomunicaciones y el desarrollo de nuevas tecnologías de telefonía móvil.
Sin embargo, los investigadores escoceses aseguran que las mejoras sustanciales en las propiedades eléctricas y ópticas del nuevo grafeno low cost, podrían impulsar nuevas aplicaciones mucho más específicas como la tecnología mobile healthcare o aplicaciones urbanas dentro de las denominadas Smart Cities. Además, si esta nueva técnica de producción de bajo coste se consolida, podría ser la clave para el desarrollo de nuevas soluciones a la corriente principal de hardware.
NOTE CREDIT: http://blogthinkbig.com/la-nueva-tecnica-de-producir-grafeno-es-100-veces-mas-barata?utm_content=buffer9515d&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
Mark Zuckerberg Is Now A Dad, Pledges To Give Away 99% Of His Shares
His pledge was, still, essentially a footnote in a long letter addressed to his new daughter, Maxima Chan Zuckerberg (Max for short), whose birth was announced on Facebook. Zuckerberg in November said he planned to take two months of paternity leave after his daughter was born.
“Your mother and I don’t yet have the words to describe the hope you give us for the future,” the letter begins. “Your new life is full of promise, and we hope you will be happy and healthy so you can explore it fully. You’ve already given us a reason to reflect on the world we hope you live in,” Zuckerberg wrote. “Like all parents, we want you to grow up in a world better than ours today.”
As you begin the next generation of the Chan Zuckerberg family, we also begin the Chan Zuckerberg Initiative to join people across the world to advance human potential and promote equality for all children in the next generation. Our initial areas of focus will be personalized learning, curing disease, connecting people and building strong communities.
We will give 99% of our Facebook shares — currently about $45 billion — during our lives to advance this mission. We know this is a small contribution compared to all the resources and talents of those already working on these issues. But we want to do what we can, working alongside many others.
The Chan Zuckerberg Initiative is going to be a new organization, formed as a limited liability company that is controlled by Zuckerberg and Priscilla Chan. Zuckerberg will still control his shares. It plans to fund non-profit organizations, make private investments and participate in policy debates, Facebook said in a released statement. Any profits from investments in companies will be used to fund additional work to advance the mission, the company said.
Zuckerberg will maintain control of his shares as a result of his control over the initiative. And over the course of their lives, the net after-tax proceeds from the sale of the shares will “be used to advance the mission of the Chan Zuckerberg Initiative,” the company said. It’s not expected to impact Zuckerberg’s status as a controlling stockholder of Facebook for the foreseeable future, with Zuckerberg committing to dispose of no more than $1 billion of Facebook stock each year for the next three years, according to the company.
This is just one of Zuckerberg’s philanthropic efforts. Yesterday, he said that he and Bill Gates were teaming up with other tech executives to start the Breakthrough Energy Coalition, which invests in zero-carbon energy technology around the world. That also includes members like Richard Branson, Jeff Bezos and Masayoshi Son.
NOTE CREDIT: http://techcrunch.com/2015/12/01/mark-zuckerberg-is-now-a-dad-pledges-to-give-away-99-of-his-shares/?ncid=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&sr_share=twitter#.dwln8uc:LB0z
Helping startups to grow globally. Charlie Graham-Brown, Seedstars World
We interview Charlie Graham-Brown, CFO, Seedstars World, featured in November.
Your background?
I started out as a mechanical engineer and thought that working on projects like the A380 at Airbus would keep me entertained but quickly realised it wasn’t for me. I jumped tracks by going through an MBA for engineers in Paris that led me to Geneva and into investment management. What excited me was the emerging and developing market focus, which got me traveling and closing deals in 20+ countries across Africa, Asia and MENA. Still being an engineer at heart, with a love to build things, I started my own social enterprise before connecting with Seedstars World, which had just done its first year and knew that was my calling!
How did you find Web Summit?
It was my first time and I could only be there for 24 hours unfortunately. I didn’t actually see inside any of the conference halls or listen to a session! I just had back-to-back meetings set up with people I wanted to see. There were Seedstars “family” members present from at least 10 countries so I had a good time with them in the evening!
What useful encounters came out of it?
Hopefully a few but it’s a bit early to say. We’re engaging a lot of corporates in our initiatives so it was a good place to meet with potential partners.
What does Seedstars World aim to do?
We aim to accelerate the development of emerging startup ecosystems and be the bridge between them all. The main tool we use for this is a global startup competition that has over $1mn funding committed. Our teams are visiting 56 countries this year to find the best startup from each. We’ll bring the 56 winners to Lausanne for our annual Seedstars Summit where they spend a week for training and networking with corporates, investors and media. At the end of 2015 we will have screened over 3000 startups, heard about 700 live pitches and mentored over 700 startups during one or two day bootcamps. I think we’ve hit our aim of becoming THE emerging and developing market entrepreneur network and now we’ll be going “deeper” in each region by opening up regional hubs, new training programs, regional summits etc. Watch this space!
How was the last 12 months?
Fast! 12 months ago we covered 36 countries with a team of 4. Now we cover 56 countries with a team of 15. It’s been a bit of blur with a few key moments that stand out. A really successful second edition of the Seedstars Summit in February. Some exciting new partnerships for example with lastminute.com group supporting travel tech and Inmarsat and AP-Swiss supporting space tech.
Anything you’d do differently?
Of course! We can always do better and are pretty hard on ourselves.
Tips for new startups?
One dollar of sales in worth at least 10 dollars in equity investment. Focus on sales, not on fundraising to start with.
What sort of companies do you search for and why?
In the markets we cover there are some major problems worth solving. So we like to find companies that are tackling big issues and not just providing “vitamins”. We focused on a few sectors this year such as travel tech given that it’s such an important part of many economies. And space tech because there is an opportunity to provide an “internet of everywhere” and new models to off-grid regions. Fin Tech is also a focus area and have a lot of activity following the success of mobile money.
The biggest success from Seedstars World?
Depends how you define success! From the last two editions of Seedstars World, in terms of funding raised, www.wayra.com from Russia is in the lead having raised significant series B for their augmented reality car navigation system. For revenue generation it’s www.other-guys.com/ from Argentina immersive, storytelling games. And in terms of downloads it would be www.scandid.in from India with their barcode scanning price comparison app.
What have been some of the common reasons for the failure of some of the companies from Seedstars World?
From the 56 winners in the last 2 editions about 12% have failed so far which isn’t bad. It’s generally a case of the sales cycle and route to revenue generation being too long. That’s where we’re trying to help with the corporate partnerships we’re building.
Future trends you excited about?
I’m excited about the next technology leapfrogs that will come out of emerging and developing markets in digital health, education and energy. We’re seeing more and more startups in these fields but no major successes yet. In developed markets insurance tech is exciting and the pace of investment is already picking up there.
Whats next for you?
We have some exciting ideas for Seedstars World in 2016 so that’s going to keep me busy!
How you manage life / work / online / offline?
Sport in general is my outlet and way to rebalance both mentally and physically. I used to do a lot more but even if there is only time for a 20 minute run I’ll take it! I think the only solution to have any balance in work and life when you’re building a company is to get used to the fact you can’t always finish the work!
Anything else?
Well, anyone interested in the emerging market tech and startup scene better make a trip to Lausanne on 3rd March next year for the 3rd annual Seedstars Sumit. If you’re not satisfied, we’ll give you a free fondue!
NOTE CREDIT: http://irishtechnews.net/ITN3/helping-startups-to-grow-globally-charlie-graham-brown-seedstars-world/
The 25 Most Disruptive Brands Of 2015
Markets now move at the speed of technology. We live in exponential times and the pace of change is accelerating. Adaptation requires radical transformation in marketing. It requires innovations to both products and the business model.
Success through innovation means continuous disruption. Disruptive brands tend to grow in leaps and bounds, changing the trajectory of consumers’ viewpoint of the brand and the marketplace. They are vibrant, daring and authentic, and often are challenger brands, operating unseen below the radar until it is too late for the competition to react to their ascendency.
They often shape the culture itself in innovative ways. Apple is the best example that comes to mind. It broke all the existing norms and conventions and created consumer advocates that evangelized for the the brand.jobs
Disruptive brands are different from ordinary brands because they get people engaged and immersed in the brand’s equity. They often mention these brands to others and treat them anthropomorphistically.
Richard Branson said, “Disruption is all about risk-taking, trusting your intuition, and rejecting the way things are supposed to be. Disruption goes way beyond advertising, it forces you to think about where you want your brand to go and how to get there.”
Here are the 25 disruptive brands that ruled 2015:
1. Uber: The year’s most highly valued start-up
2. Airbnb: The world’s biggest accommodation company
3. Facebook: The new face of mobile too
4. Red Bull: Taking content marketing to an extreme
5. Snapchat: 2 billion pictures and videos disappear daily
6. Alibaba: Helping consumers save, spend and be entertained
7. Netflix: 70 million subscribers and content muscle
8. Under Armour: Keeping Misty Copeland on her toes
9. Instagram: The mobile social networking
10. Apple: Creating magic in wearables too
11. CVS: Kicking the smoking habit
12. Taylor Swift: Saying no to low-royalty streaming services
13. Google: Another “Moon shot”, a self-driving car
14. Warby Parker: A Millenials’ favorite, taking on Luxottica
15. Chipotle: Healthy fast food
16. 72andSunny: Sizzling hot ad agency
17. SoulCycle: Robust workout for the body and wallet
18. Rent the Runway: The Netflix of designer dresses
19. Houzz: The DIY interior design site
20. Waze: The largest community-based navigation app
21. DraftKings: One-day fantasy sports league
22. Coke: The real thing in name-based packaging
23. Eataly: Spacious food bazaar
24. Birchbox: Beauty gifts for a price
25. Virgin America: Perfecting customer experience
Disruptive brands understand consumer trends before they become trends and capitalize on them better than their competitors. Many of these brands understand the shift to a sharing economy and have designed their business model accordingly. For example, understanding that people avoid interruptive messaging, for the overwhelming majority of these brands traditional advertising is not a major component of their business model.
Business competition has never been fiercer. Those who have been known to disrupt are watching their backs because they know the business world is a cyclical one, and they know that their cycle will some day give in to younger, nimbler, leaner, more creative and more innovative companies.
It is interesting to see how many legacy brands and companies have surrendered the mantle of innovation and disruption. Companies like Procter & Gamble, McDonald’s or Yahoo! have stopped being thought leaders and now take their inspiration from new, smaller competitors.
NOTE CREDIT: http://www.forbes.com/sites/avidan/2015/11/29/the-25-most-disruptive-brands-of-2015/?utm_campaign=Forbes&utm_source=TWITTER&utm_medium=social&linkId=19214917
Success through innovation means continuous disruption. Disruptive brands tend to grow in leaps and bounds, changing the trajectory of consumers’ viewpoint of the brand and the marketplace. They are vibrant, daring and authentic, and often are challenger brands, operating unseen below the radar until it is too late for the competition to react to their ascendency.
They often shape the culture itself in innovative ways. Apple is the best example that comes to mind. It broke all the existing norms and conventions and created consumer advocates that evangelized for the the brand.jobs
Disruptive brands are different from ordinary brands because they get people engaged and immersed in the brand’s equity. They often mention these brands to others and treat them anthropomorphistically.
Richard Branson said, “Disruption is all about risk-taking, trusting your intuition, and rejecting the way things are supposed to be. Disruption goes way beyond advertising, it forces you to think about where you want your brand to go and how to get there.”
Here are the 25 disruptive brands that ruled 2015:
1. Uber: The year’s most highly valued start-up
2. Airbnb: The world’s biggest accommodation company
3. Facebook: The new face of mobile too
4. Red Bull: Taking content marketing to an extreme
5. Snapchat: 2 billion pictures and videos disappear daily
6. Alibaba: Helping consumers save, spend and be entertained
7. Netflix: 70 million subscribers and content muscle
8. Under Armour: Keeping Misty Copeland on her toes
9. Instagram: The mobile social networking
10. Apple: Creating magic in wearables too
11. CVS: Kicking the smoking habit
12. Taylor Swift: Saying no to low-royalty streaming services
13. Google: Another “Moon shot”, a self-driving car
14. Warby Parker: A Millenials’ favorite, taking on Luxottica
15. Chipotle: Healthy fast food
16. 72andSunny: Sizzling hot ad agency
17. SoulCycle: Robust workout for the body and wallet
18. Rent the Runway: The Netflix of designer dresses
19. Houzz: The DIY interior design site
20. Waze: The largest community-based navigation app
21. DraftKings: One-day fantasy sports league
22. Coke: The real thing in name-based packaging
23. Eataly: Spacious food bazaar
24. Birchbox: Beauty gifts for a price
25. Virgin America: Perfecting customer experience
Disruption is the new normal.
Disruptive brands understand consumer trends before they become trends and capitalize on them better than their competitors. Many of these brands understand the shift to a sharing economy and have designed their business model accordingly. For example, understanding that people avoid interruptive messaging, for the overwhelming majority of these brands traditional advertising is not a major component of their business model.
Business competition has never been fiercer. Those who have been known to disrupt are watching their backs because they know the business world is a cyclical one, and they know that their cycle will some day give in to younger, nimbler, leaner, more creative and more innovative companies.
It is interesting to see how many legacy brands and companies have surrendered the mantle of innovation and disruption. Companies like Procter & Gamble, McDonald’s or Yahoo! have stopped being thought leaders and now take their inspiration from new, smaller competitors.
NOTE CREDIT: http://www.forbes.com/sites/avidan/2015/11/29/the-25-most-disruptive-brands-of-2015/?utm_campaign=Forbes&utm_source=TWITTER&utm_medium=social&linkId=19214917
When Your Boss Is an Uber Algorithm
Researchers examine how Uber steers its drivers’ behavior with its automated management system, despite its promise of being “your own boss.”
It sends texts with last-minute requests for extra shifts and won’t consider requests for a raise. Yes, the software that manages drivers for Uber has a few things in common with unpopular human bosses.
Researchers say the company’s automated management system, and that of its competitor Lyft, creates new dynamics between workers and their paymasters that should be scrutinized. A paper presented last week by Data & Society, a nonprofit research institute in New York City, recounts ways that Uber’s system steers its drivers’ behavior and suggests that regulators may need to consider them.
Uber calls its drivers “independent contractors” and solicits new ones with the promise of being “your own boss.” Alex Rosenblat, a researcher at Data & Society and coauthor of the new paper, interviewed a handful of drivers, talked less formally with many others from the back of an Uber, and monitored nearly a year of discussions by drivers in online forums. She says the reality of being an Uber contractor is different. “Uber does control a lot of the ways that drivers behave on the job,” she says.
Drivers meet a human when they first sign up to drive for Uber or Lyft. After that they interact with an automated management system primarily delivered by a mobile app.
When a driver is logged in, the app assigns them pickup requests from people nearby. The system metes out feedback by tracking the proportion of pickups a driver accepts (Lyft and Uber each give drivers 15 seconds to decide), and averaging the rating that passengers give their driver after a ride. Drivers can be suspended for not accepting enough rides, or for low passenger ratings; they are incentivized to work at particular times, or in particular places, by “surge pricing” that temporarily raises fares.
Some passengers dislike surge pricing, but Uber’s CEO Travis Kalanick has defended it as a straightforward mechanism to reconcile supply and demand (see “In Praise of Efficient Price Gouging”).
Drivers sometimes receive messages urging them to work on a particular day at a particular time because heavy demand is forecast, for example. And they reported receiving surveys asking when exactly they will be driving in coming days.
Rosenblat says that shows Uber doesn’t just let the market decide. Drivers have to determine how much they trust the company to help them earn more—and many resent or resist Uber’s nudges, she says.
“Uber says it wants to act as a neutral intermediary that connects supply and demand with an automated mechanism for finding the right price,” says Rosenblat. “It’s difficult to argue that you’re a neutral platform if you’re actively trying to manage supply and demand.”
Uber also uses its passenger feedback system as a lever on driver behavior, says Rosenblat. Drivers are highly motivated to keep their score up to avoid being cut off. The company sometimes sends out e-mails with very specific advice about what drivers can do—such as offering snacks or not talking about other business interests—to earn positive ratings.
Rosenblat says that regulators should consider whether the way systems like Uber’s can influence workers’ behavior could go too far. She says the U.S. Federal Trade Commission has shown an interest in her research. She worked with Luke Stark of New York University, and presented their paper at a conference on labor in the on-demand economy at the Centre for European Policy Studies in Brussels, Belgium, last week.
Min Kyung Lee, a research scientist at Carnegie Mellon University’s Center for Machine Learning, published her own study of Uber and Lyft drivers earlier this year.
She found that much of the time they were happy with the “algorithmic management” that assigned fares and raised rates during busy periods. But drivers also complained that they were sometimes pushed to do things that seemed unreasonable, such as make pickups that weren’t nearby.
Lee and Rosenblat both say they have had friendly interactions with Uber, which has shown an interest in their research. Uber spokesperson Jessica Santillo says the company provides information to drivers to help them grow their income, and that they are free to ignore any suggestions. “Drivers use Uber on their own terms; they control their use of the app,” she says.
Uber is facing a class action lawsuit from people that have driven for the company that hinges on how much control the company has over drivers. The suit, heading to trial next summer, alleges that Uber has enough control that drivers should be considered employees and not contractors, and given the attendant benefits and legal standing.
Rosenblat says that awareness of that looming legal problem has made some drivers more likely to question their relationship with Uber. “As drivers have become more cognizant of the independence they should have as contractors, they’ve started to ask things like, ‘Why can’t I set the base rate for a fare?’” she says. Uber’s minimum fares are as low as $5—before Uber’s cut—in some U.S. cities.
Lee says such tensions could become more widespread as Uber-style companies become more powerful, and automated management perhaps spreads to other domains. “I see a lot of good things in using algorithms like this, but at the same time we need to be careful how we design them,” says Lee.
NOTE CREDIT: http://www.technologyreview.com/news/543946/when-your-boss-is-an-uber-algorithm/
It sends texts with last-minute requests for extra shifts and won’t consider requests for a raise. Yes, the software that manages drivers for Uber has a few things in common with unpopular human bosses.
Researchers say the company’s automated management system, and that of its competitor Lyft, creates new dynamics between workers and their paymasters that should be scrutinized. A paper presented last week by Data & Society, a nonprofit research institute in New York City, recounts ways that Uber’s system steers its drivers’ behavior and suggests that regulators may need to consider them.
Uber calls its drivers “independent contractors” and solicits new ones with the promise of being “your own boss.” Alex Rosenblat, a researcher at Data & Society and coauthor of the new paper, interviewed a handful of drivers, talked less formally with many others from the back of an Uber, and monitored nearly a year of discussions by drivers in online forums. She says the reality of being an Uber contractor is different. “Uber does control a lot of the ways that drivers behave on the job,” she says.
Drivers meet a human when they first sign up to drive for Uber or Lyft. After that they interact with an automated management system primarily delivered by a mobile app.
When a driver is logged in, the app assigns them pickup requests from people nearby. The system metes out feedback by tracking the proportion of pickups a driver accepts (Lyft and Uber each give drivers 15 seconds to decide), and averaging the rating that passengers give their driver after a ride. Drivers can be suspended for not accepting enough rides, or for low passenger ratings; they are incentivized to work at particular times, or in particular places, by “surge pricing” that temporarily raises fares.
Some passengers dislike surge pricing, but Uber’s CEO Travis Kalanick has defended it as a straightforward mechanism to reconcile supply and demand (see “In Praise of Efficient Price Gouging”).
Drivers sometimes receive messages urging them to work on a particular day at a particular time because heavy demand is forecast, for example. And they reported receiving surveys asking when exactly they will be driving in coming days.
Rosenblat says that shows Uber doesn’t just let the market decide. Drivers have to determine how much they trust the company to help them earn more—and many resent or resist Uber’s nudges, she says.
“Uber says it wants to act as a neutral intermediary that connects supply and demand with an automated mechanism for finding the right price,” says Rosenblat. “It’s difficult to argue that you’re a neutral platform if you’re actively trying to manage supply and demand.”
Uber also uses its passenger feedback system as a lever on driver behavior, says Rosenblat. Drivers are highly motivated to keep their score up to avoid being cut off. The company sometimes sends out e-mails with very specific advice about what drivers can do—such as offering snacks or not talking about other business interests—to earn positive ratings.
Rosenblat says that regulators should consider whether the way systems like Uber’s can influence workers’ behavior could go too far. She says the U.S. Federal Trade Commission has shown an interest in her research. She worked with Luke Stark of New York University, and presented their paper at a conference on labor in the on-demand economy at the Centre for European Policy Studies in Brussels, Belgium, last week.
Min Kyung Lee, a research scientist at Carnegie Mellon University’s Center for Machine Learning, published her own study of Uber and Lyft drivers earlier this year.
She found that much of the time they were happy with the “algorithmic management” that assigned fares and raised rates during busy periods. But drivers also complained that they were sometimes pushed to do things that seemed unreasonable, such as make pickups that weren’t nearby.
Lee and Rosenblat both say they have had friendly interactions with Uber, which has shown an interest in their research. Uber spokesperson Jessica Santillo says the company provides information to drivers to help them grow their income, and that they are free to ignore any suggestions. “Drivers use Uber on their own terms; they control their use of the app,” she says.
Uber is facing a class action lawsuit from people that have driven for the company that hinges on how much control the company has over drivers. The suit, heading to trial next summer, alleges that Uber has enough control that drivers should be considered employees and not contractors, and given the attendant benefits and legal standing.
Rosenblat says that awareness of that looming legal problem has made some drivers more likely to question their relationship with Uber. “As drivers have become more cognizant of the independence they should have as contractors, they’ve started to ask things like, ‘Why can’t I set the base rate for a fare?’” she says. Uber’s minimum fares are as low as $5—before Uber’s cut—in some U.S. cities.
Lee says such tensions could become more widespread as Uber-style companies become more powerful, and automated management perhaps spreads to other domains. “I see a lot of good things in using algorithms like this, but at the same time we need to be careful how we design them,” says Lee.
NOTE CREDIT: http://www.technologyreview.com/news/543946/when-your-boss-is-an-uber-algorithm/
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