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Creator transparent burger robot doesn&t grind your brisket and chuck steak into a gourmet patty until you order it. Thatjust one way this startup, formerly known as Momentum Machines, wants to serve the worldfreshest cheesebuger for just $6. On June 27th, after 8 years in development, Creatorunveils its first robot restaurant before opening to the public in September. We got a sneak peek…err…taste.
When I ask how a startup launching one eatery at a time could become a $10 billion company, Creator co-founder and CEO AlexVardakostas looks me dead in the eye and says &the market is much bigger than that.&
Herehow Creatorburger-cooking bot works at its 680 Folsom St location in San Francisco. Once you order your burger style through a human concierge on a tablet, a compressed air tube pushes a baked-that-day bun into an elevator on the right. Itsawwed in half by a vibrating knife before being toasted and buttered as its lowered to conveyor belt. Sauces measured by the milliliter and spices by the gram are automatically squirted onto the bun. Whole pickles, tomatoes, onions, and blocks of nice cheese get slices shaved off just a second before they&re dropped on top.
Meanwhile, the robot grinds hormone-free, pasture-raised brisket and chuck steak to order. But rather than mash them all up, the strands of meat hang vertically and are lightly pressed together. They form a loose but auto-griddleable patty thatthen plopped onto the bun before the whole package slides out of the machine after a total time of about five minutes. The idea is that when you bite into the burger, your teeth align with the vertical strands so instead of requiring harsh chewing it almost melts in your mouth.
If you want to be the first to try it, Creator is selling early access tickets at 10am Pacific today. Otherwise it will be open for lunch Wednesdays and Thursdays until the public launch. Eventually, an app will let people customize the exact ratios of all the ingredients, unlocking near infinite permutations.
For now, the startupinitial pre-set burger options include the classic-style Creator vs. The World with a mole Thousand Island special sauce, the oyster aioli Tumami Burger designed by Chef Tu of Top Chef, The Smoky with charred onion jam, and the sunflower seed tahini Dad Burger from Chef Nick Balla of Bar Tartine.
The taste of each is pretty remarkable. The flavor pops out of all the fresh cut and ground ingredients that lack the preservatives of pre-sliced stuff. The patties hold together as you munch despite being exceedingly tender. And afterwards I felt less of the greasy, gut-bomb, food coma vibe that typically accompanies scarfing down a cheeseburger.
&This is the kind of burger you would get for $12 to $18 [at an upscale restaurant], and it$6& saysVardakostas. It might not be the best burger I&ve had in my life, but itcertainly the best at that price. A lot of that comes from the savings on labor and kitchen space afforded by a robot cook.&We spend more on our ingredients than any other burger restaurant.&
The CEO wouldn&t reveal how much Creator has raised, but says itbacked by GoogleGV, frequent food startup investor Khosla Ventures, and hardware-focused Root Ventures. However, SEC filings attained by TechCrunch show the startup raised at least $18.3 million in 2017, and sought $6 million more back in 2013.
Itunderstandable why. &McDonalds is a $140 billion company. Itbigger than GM and Tesla combined. McDonalds has 40,000 restaurants. Food is one to the top three biggest markets&Vardakostas rattles off. &But we have a lot of advantages.The average reastaurant is 50 percent bigger in terms of square footage.& Then he motions to his big robot thata lot smaller than the backside of most fast-food restauants, and with a smile says &Thatour kitchen. You roll it in and plug it in.&
From Flipping Patties To Studying Physics
Creator co-founder and CEO Alex Vardakostas
What you want in a founder is a superhero origin story. Some formative moment in their life that makes them hellbent on solving a problem. Vardakostas has a pretty convincing tale. &My parents have a burger joint& he reveals. &My job was to make several hundred of the same burger every day.You realize thereso much opportunity not taken because you don&t have the right tools, and ithard work.&
Robots and engineering weren&t even on his radar growing up in the restaurant in southern California. Then, &when I was 15 my dad took me to a book store for the first time.I started reading about physics and realizing that this could be a possibility.& He went on to study physics at UC Santa Barbara, got to work in the garage, and finally drove up to Silicon Valley to machine the first robot prototypeparts at the famous Silicon Valley TechShop.
Thatwhen he met his co-founder and COO Steve Frehn. &Steve told me he was from Stanford and I was super intimidated&Vardakostas recalls. But the two had a great working rapport, and a knack for recruiting budding mechanical engineers from the college. Momentum Machines started in 2009, was a full-time garage project by 2010, incorporated and joined Lemnos Labs in 2012, and the startup began to make serious progress by 2014.
In the meantime, other entrepreneurs have tried to find a business in food robots. There was the now-defunct Y Combinator startup Bistrobot that haphazardly spurted liquid peanut butter and Nutella on white bread and called it a sandwich. More recently, Miso Robotics& burger-flipping arm named Flippy made headlines, even though all it does is flip and cook patties on a traditional griddle. &We have an arm that pulls out the burgers, but thatprobably 5 percent of the complexity& of the full Creator robot run by 350 sensors, 50 actuators, and 20 computers,Vardakostas scoffs.
Breaking Burger Behavior
The CEOpast in the kitchen keeps Creator in touch with the human element. He tells me he thinks the idea of a staff-less restaurant where you order on a computer sounds &dystopian&. In fact, he wants to give his food service employees access to new careers.Vardakostas says with a sigh that &people look at restaurant work as a charity case, but man, we just need a chance.&Referring to the old Google policy of letting employees try out side projects, he explains how &Tech companies get 10 percent time but no one does that for restaurant workers.&
&Something we got really excited about in 2012 and we&re just starting to excute on is reinventing the job of working in a store like this, where the machine it taking care of the dirty and dangerous work& his co-founder Frehn explains. &We&re playing around with education programs for the staff. 5 percent of the time they&re paid just to read. We&re already doing that. Therea book budget. We&re paying $16 an hour.As opportunities come up to fix the machine, therea path we&re going to offer people as repair or maintenance people to get paid even more.&
One tradition Creator couldn&t escape was french fries. Vardakostas says they&re basically the least healthy thing you can eat, noting they&re &worse than donuts because theremore surface area exposed to the frier.& But chefs told him some people simply wouldn&t eat a burger without them. Creatorcompromise is that burgers are paired with hearty miniature farro or seasonal veggie salads by default, but you can still opt for a side of frites.
Creatorfate won&t just be determined by the burger robot and the people that work alongside it. The startup will have to prove to fast food diners that it can be just as quick and cheap but a lot tastier, and that they&re welcome amongst the restaurantbougie Pottery Barn decor. At the same time, it must convince more affluent eaters that a cafeteria-style ordering counter and low price don&t mean low quality. Oh, and the name is a bit rich for a burger spot.
For now, Creator won&t be licensing out its bot or franchising its restaurant, though those could be lucrative. &I don&t want someone putting frozen beef in there or charging way more& says Vardakostas. Instead, the goal is to methodically expand, and maybe take advantage of its petite footprint to move into airport terminals or bus stations. &We want to get out of San Francisco& Frehn confidently concludes. &Our business model is pretty simple. We take a really good burger that people like and sell it for half the price.&
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Read more: Taste test: Burger robot startup Creator opens first restaurant
Write comment (99 Comments)In a press release touting &another record year,& Intel dropped a a bombshell, announcing that CEO Brian Krzanich is resigning, amid revelations of a &past consensual relationship& with an employee.
&Intel was recently informed that Mr. Krzanich had a past consensual relationship with an Intel employee,& the company notes in the release. &An ongoing investigation by internal and external counsel has confirmed a violation of Intelnon-fraternization policy, which applies to all managers. Given the expectation that all employees will respect Intelvalues and adhere to the companycode of conduct, the Board has accepted Mr. Krzanichresignation.&
Krzanich is stepping down from both the chief executive position and the companyboard of directors half a decade after being appointed to the role. CFO Robert Swan has been named the companyinterim CEO in his stead. Swan has been in the CFO role since late-2016, having previous held the position at both eBay and Electronic Data Systems Corp.
Herewhat he had to say on the matter, &Inteltransformation to a data-centric company is well under way and our team is producing great products, excellent growth and outstanding financial results. I look forward to Intel continuing to win in the marketplace.&
Meantime, Intel is looking in earnest for a more permanent replacement with both internal and external candidates.
&The Board believes strongly in Intelstrategy and we are confident in Bob Swanability to lead the company as we conduct a robust search for our next CEO,& Intel Chairman Andy Bryant said in the release. &Bob has been instrumental to the development and execution of Intelstrategy, and we know the company will continue to smoothly execute. We appreciate Brianmany contributions to Intel.&
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Read more: Intel’s CEO resigns as information about a ‘past consensual relationship’ surfaces
Write comment (95 Comments)Twitter this morning announced it has agreed to buy San Francisco-based technology company Smyte,which describes itself as &trust and safety as a service.& Founded in 2014 by former Google and Instagram engineers, Smyte offers tools to stop online abuse, harassment, and spam, and protect user accounts.
Terms of the deal were not disclosed, but this is Twitterfirst acquisition since buying consumer mobile startup Yes, Inc. back in December 2016
Online harassment has been of particular concern to Twitter in recent months, as the level of online discourse across the web has become increasingly hate-filled and abusive. The company has attempted to combat this problem with new policies focused on the reduction of hate speech, violent threats, and harassment on its platform, but itfair to say that problem is nowhere near solved.
As anyone who uses Twitter will tell you, the site continues to be filled with trolls, abusers, bots, and scams & and especially crypto scams, as of late.
This is where Smytetechnology & and its team & could help.
The company was founded by engineers with backgrounds in spam, fraud and security.
Smyte CEO Pete Hunt previously led Instagramweb team, built Instagrambusiness analytics products, and helped to open source FacebookReact.js; co-founder Julian Tempelsman worked on Gmailspam and abuse team, and before that Google Walletanti-fraud team and the Google Drive anti-abuse team; and co-founder Josh Yudaken was a member of Instagramcore infrastructure team.
The startup launched out of Y Combinator in 2015, with a focus on preventing online fraud.
Today, its solutions are capable of stopping all sorts of unwanted online behavior, including phishing, spam, fake accounts, cyberbullying, hate speech and trolling, the companywebsite claims.
Smyte offer customers access to its technology via a REST API, or it can pull data directly from its customerapp or data warehouse to analyze. Smyte would then import the existing rules, and use machine learning to create new rules and other machine learning models suited to the businessspecific needs.
The customers data scientists could also use Smyte to deploy (but not train) their own custom machine learning models, too.
Smytesystem includes a dashboard where analysts can surface emerging trends in real-time, as well as conduct manual reviews of individual entities or clusters of related entities and take bulk actions.
Non-technical analysts could use Smyte to create custom rules tested on historical data, then roll them out to production and watch how they perform in real-time.
For Twitter, the use case for Smyte is obvious & its technology will be integrated with Twitter itself and its backend systems for monitoring and managing reports of abuse, while also taking aim at bots, scammers and a number of other threats todaysocial networks typically face.
Of course, combatting abuse and bullying will remain Twittermost pressing area of concern & especially as itthe place where President Trump tweets, and the daily news is reported and discussed (and angrily fought about).
But Twitter could use some help with its troll and bot problem, too. The company, along with Facebook, was home to Russian propaganda during the 2016 U.S presidential election. In January, Twitter notifiedat least 1.4 million users they saw content created by Russian trolls;it also was found to have hosted roughly 50,000 Russian bots tweeting election-related content in November 2016.
Presumably, Smytetechnology could help weed out some of these bad actors, if it works as well as described.
Twitter didn&t provide much detail as to how, specifically, it plans to put Smytetechnology to use.
Instead, the company largely touted the teamexpertise and the &proactive& nature of Smyteanti-abuse systems, in todayannouncement:
From ensuring safety and security at some of the worldlargest companies to specialized domain expertise, Smyteyears of experience with these issues brings valuable insight to our team. The Smyte team has dealt with many unique issues facing online safety and believes in the same proactive approach that we&re taking for Twitter: stopping abusive behavior before it impacts anyoneexperience. We can&t wait until they join our team to help us make changes that will further improve the health of the public conversation.
According to Smytewebsite, the company has a number of high-profile clients, including Indiegogo, GoFundMe, npm, Musical.ly, TaskRabbit, Meetup, OLX, ThredUp, YouNow, 99 Designs, Carousell, and Zendesk.
Twitter tells us that Smyte will wind down its operations with those customers & it didn&t acquire Smyte for its revenue-generation potential, but rather for its talent and IP.
LinkedIn reports there are only a couple dozen employees at Smyte today, including the founders. But Smtyeown website lists just nineteen. Twitter wouldn&t confirm Smtye&scurrent headcount but says itworking to find positions for all.
Terms of the deal were not disclosed, but Smyte had raised $6.3 million in funding from Y Combinator, Baseline Ventures, Founder Collective, Upside Partnership, Avalon Ventures, and Harrison Metal, according to Crunchbase.
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Read more: Twitter acquires anti-abuse technology provider Smyte
Write comment (90 Comments)Since finally launching in-app tipping for drivers last year, Uber has facilitated more than $600 million worth of payments in tips to its drivers. In August, Uber hit $50 million in tips.
Since introducing mid-trip ratings and tips in May, there has been a 30 percent increase in tipping, Uber product manager Dhruv Tyagi wrote in a blog post. In April, Lyft announced drivers hit $500 million in tips since its launch, with tip averages increasing by nearly 8 percent in 2017 compared to 2016.
Lyft, of course, is not available in nearly as many markets as Uber. Lyft only operates in the U.S. and Canada, while Uber operates in the U.S., Canada, Central and South America, Europe, the Middle East, Africa, East Asia, South Asia, Southeast Asia, Australia and New Zealand. So, more continents and cities means more opportunities for tipping.
Uber drivers make the most tips in Salt Lake City, Utah, San Antonio, Texas, Kansas City, Mo, New Orleans, La. and Nashville, Tenn. When Lyft ran its numbers, it found riders are most generous in New York City, Atlanta, Detroit, Dallas, San Jose, Minneapolis, and Westchester County, NY.
In terms of popular times to tip, people tip the most on Thursday, Friday, Saturday. Perhaps unsurprisingly, they tip the most at 8:12pm on Thursday, 10:33pm on Saturday and 5:17am on Sunday.
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Read more: Uber drivers made more than $600 million in tips in one year
Write comment (95 Comments)The online language school market is continuing to heat up, and a startup that connects native English speakers with an audience of students spanning China and 35 other countries for live language tutorials, is helping fan those flames. VIPKID, based out of Beijing, today announced that it has raised $500 million in funding — a Series D+ round that values the startup at over $3 billion.
That valuation was originally mentioned inreports in April when VIPKID was still raising the money, and we have now confirmed it with sources close to the company.
(We&ve reached out to the company to see if we can get more detail on that front.)
This latest growth round was led by a group of investors that include both strategic and financial players: Coatue Management,Tencent, Sequoia Capital and Yunfeng Capital — Alibaba chief Jack Mainvestment company — were all co-leads on the deal.
For some context on that valuation and how it has soared in the last year, it was in August 2017 that VIPKID raised $200 million on a $1.5 billion valuation. It has now raised some $850 million in financing since being founded in 2013.
The companysize has soared in that time, too. Last year VIPKID said that it had20,000 teachers and 200,000 paying students from 32 countries. Now those numbers are at over 40,000 teachers and 300,000 students across 35 markets.
With the bulk of the latter group still coming from China — as we have written before, ittargeting a very large group of upwardly-mobile parents in the country who are looking to improve their childrenEnglish skills — it looks like VIPKID might be looking to ramp up targeting more markets.
But as with many other two-sided marketplaces, VIPKID also faces a lot of competition on the supply front: as we reported in April, itcompeting against the likes of other Chinese companies like VIPABC, 51Talk, and others to hire native English speakers to fuel their live tutoring programs.
VIPKIDcore product is likely attractive to investors because of how it has successfully tapped into more than one growth area in the tech world, namely online education, live video streaming services and e-commerce. Going forward, the company plans to use the funding in three areas, according to founder and CEO Cindy Mi (pictured above), that will help advance all three of these.
&The first is to enhance the student learning experience by adding more leading educational curriculum content and products such as online textbooks, and creating a seamless user experience by enhancing engineering, technology and product,& she said in a statement. &The second is to provide additional tools and assistance to teachers and continued growth of the teacher community to support the increase in product offerings. The third is to leverage the latest advances in machine learning to explore and pioneer the future of learning.&
Itinteresting to note that VIPKID does not seem to be focused right now on moving outside of its core focus of teaching English, and a smaller business called Lingo Bus focused on teaching Mandarin to kids globally. However, you could imagine how the same tools and framework could be used for other language vectors — for example, teaching Spanish to an Indian audience. In other words, VIPKID might just be at the tip of the iceberg in terms of its potential.
Online education is getting fuelled by a massive wave of capital at the moment.VIPKID notes that in the first halfof 2018, Chinese K-12 education startups picked no less than $1.5 billion in financing. Further afield, Memrise earlier this month raised $15.5 million; and Blinkist — which condenses non-fiction books in aid of encouraging &life-long learning& — yesterday announced $18.8 million in funding. And Coursera may also be due for a financing injection soon, too.
Within the bigger category, there are some clear leaders emerging, and that is where the bulk of money is going, it seems.
&We believe that VIPKID is transforming the shape of traditional education on a global scale and is providing an excellent new model for future education,& saidPhilippe Laffont, Founder of Coatue Management, in a statement. &Coatue is excited about VIPKIDopportunity to integrate outstanding educational resources globally and boost its internationalization process.&
Notably, WeChat owner and Internet giant Tencent works with another online education startup, Age of Learning, meaning there is potential for helping VIPKID also grow using its network effect. &Tencent attaches great importance to investment in online education,& saidLin Haifeng, managing partner at Tencent Investment, in a statement. &We hope to have close cooperation with our most important partners like VIPKID and to help the Chinese education industry explore the global market and the boundaries and possibilities of education.&
Other investors have included Kobe Bryant, Innovation Works, Learn Capital, Sequoia Capital, Matrix Partners and Northern Light Venture.
See more from Cindy Mi speaking to us at Disrupt last September here.
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While French banks are just catching up to Apple Pay, French startup Lydia is adding support for Samsung Pay. If you have a recent Samsung phone, you can now add a virtual card to Samsung Pay and pay using your phone in your favorite stores.
Lydia started as a peer-to-peer payment app. It works more or less like Venmo or Square Cash in the U.S. After signing up, you can add a debit card to your account and send and receive money for free. You can withdraw your balance to a traditional bank account whenever you want.
The company has been adding more features to turn Lydia into the only banking app you need. You can now connect Lydia to your bank accounts, view your balances, get an IBAN, initiate transfers, create Lydia sub-accounts with multiple people and get a physical MasterCard.
Some features are now part of a premium subscription for €2.99 per month ($3.47) or €3.99 per month with the physical card ($4.62). The company also expanded to the U.K., Ireland, Spain and Portugal. There are a million registered users on Lydia.
More interestingly, Lydia wants to go beyond peer-to-peer payments. You can use Lydia to pay in some grocery stores, such as Franprix stores. You can also pay online by receiving a push notification and confirming the transaction in the Lydia app — Cdiscount supports Lydia for instance.
And when you can&t pay with your Lydia account directly, the startup doesn&t want to play favorites. You can generate a virtual card and enter the card number on an e-commerce website. You can add this virtual card to Apple Pay or Samsung Pay. Letsee if Google Pay is next.
This could be particularly interesting for users who can&t use those payment systems because their banks don&t support those features. Letbe honest, you rarely change your bank. With Lydia, you can still use Apple Pay or Samsung Pay with your existing bank account.
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Read more: Lydia now supports Samsung Pay
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