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Daily Crunch: November 4, 2021

A daily digest of the most significant and impactful stories from TechCrunch is delivered to inboxes each day at 3 p.m. PDT. You can subscribe to this roundup here.

Greetings, and welcome to today’s Daily Crunch for November 4, 2021. A substantial amount of news awaits, but be sure to review the schedule for our forthcoming TC Sessions: Space event.

Event Announcement: TC Sessions: Space

The upcoming TC Sessions: Space event promises to be an exceptional experience. It is anticipated to be, quite literally, groundbreaking and innovative.

— Alex

TechCrunch's Leading Three Stories

Here's a rundown of the top three tech news items from TechCrunch, covering significant developments in the digital landscape.

Google Enables Third-Party Payments in South Korea

A recent legislative change in South Korea now permits developers distributing apps through the Google Play Store to integrate alternative payment systems, in addition to Google’s own options.

This development, while seemingly minor, represents a notable shift. Alphabet and Apple have consistently prioritized maximizing revenue from their app stores, often at the expense of developers and consumers.

The new law challenges this approach, fostering a more open and competitive environment for app payments within the South Korean market.

Latin American Fintech Startups Continue to Thrive

Latin America is rapidly emerging as a prime location for companies focused on financial technology. The region presents substantial opportunities for innovation and growth in the financial services sector.

Recent data indicates record levels of fundraising within the Latin American fintech space. TechCrunch investigated the factors propelling this startup surge.

The success of companies like Nubank, following its initial public offering, has played a key role in attracting investment and validating the region’s potential.

Autonomous Taxis Begin Service in San Francisco

Driverless taxi services have officially launched in San Francisco, marking a significant milestone in the development of autonomous vehicle technology.

Despite the city’s challenging terrain – characterized by steep hills and intricate street layouts – Cruise, a subsidiary of Alphabet, is now operating a fleet of self-driving taxis.

Successful implementation in San Francisco suggests the potential for expansion to other urban centers, bringing the promise of driverless transportation closer to reality.

The high concentration of tech professionals in San Francisco didn't necessarily predict an early rollout, but Cruise has overcome the logistical hurdles.

Startups/VC

Prior to examining recent startup developments, Anna Heim’s insightful analysis of the ongoing debate between SaaS and on-demand pricing models is highly recommended.

Gwoop is Distinct from Whoop and Goop: Gwoop is, in fact, a platform designed for esports training, collaborating with scholastic gaming organizations. This development is particularly noteworthy, suggesting a generational gap in technological experiences. The integration of esports into high school curricula represents a significant shift, a contrast to the limited gaming options available in earlier eras. The success of the esports training sector is evident, as demonstrated by the recent funding secured by Metafy.
Legal Setback for Blue Origin’s Spacesuit Plans: A recent judicial decision presents a challenge for Jeff Bezos’ space exploration company, Blue Origin, regarding its ambitions for involvement in NASA’s lunar missions. The company’s attempt to secure funding for its moon mission endeavors has been rejected.
UpWest Secures $70M to Facilitate Israeli Startup Expansion into the U.S.: Startups experiencing success in one market often seek opportunities for expansion into others. This mirrors the premise of Jane Austen’s “Pride and Prejudice,” adapted to the startup world. Substitute “startup” for “single man,” “well funded” for “good fortune,” and “a desire to enter new geographic markets” for “a wife,” and you essentially capture UpWest’s core offering. The firm aims to assist Israeli companies in accessing a larger market.
WhyLabs Obtains $10M in Funding for AI Observability: While AI models are not sentient, WhyLabs provides tools to monitor the performance and health of machine learning systems. This new funding round follows a $4 million seed round raised the previous year.
PubNub’s Success Demonstrates the Growing Importance of Data Streaming: With a recent influx of $65 million in capital, PubNub’s investment in data streaming technology is proving successful. The company’s Series E funding will be used to expand its APIs, which facilitate real-time messaging and data updates for various digital applications and businesses across new regions.

The Growing Trend of Usage-Based Pricing in SaaS

A recent annual pricing survey conducted by OpenView, a venture capital firm located in Boston, reveals a significant shift in how SaaS companies are structuring their pricing models.

The survey, encompassing nearly 600 SaaS businesses, indicates that usage-based pricing is rapidly becoming the industry standard.

In the previous year, 34% of respondents reported employing a flexible pricing approach. This year, that percentage has increased substantially to 45%.

Kyle Poyar, an operating partner at OpenView, explained that the rise of AI is a key driver of this change.

He noted that as AI automates more tasks, the success of a solution is often correlated with a decrease in the number of users needing to log in.

Consequently, traditional seat-based pricing is becoming increasingly obsolete.

Poyar argues that seat counts are no longer an effective method for conveying value or incentivizing investment in features that enhance that value.

This shift reflects a broader trend towards aligning pricing directly with the benefits customers receive from a SaaS product.

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Big Tech Inc.

We begin today’s discussion of Big Tech with coverage from Ryan Lawler regarding Blend’s progression beyond the mortgage sector into a more comprehensive fintech platform. A detailed look can be found here.

The United Kingdom is signaling a firmer stance toward social media firms that attract its disapproval: Several points are noteworthy. Firstly, the U.K. now has a “secretary of state for digital” recently appointed, Nadine Dorries. Secondly, indications suggest she intends to adopt a more assertive approach.
TechCrunch details that she aims “to implement a stricter policy regarding social media platforms compared to her predecessor,” potentially encompassing “criminal penalties for violations of the forthcoming [national] online safety laws.”
Furthermore, concerning Facebook, Meta is currently developing customized features for its Groups offering.
Nikola allocates funds for potential legal settlements: The struggling EV manufacturer, Nikola, anticipates unfavorable outcomes and has reserved $80 million for settlements with the American Securities and Exchange Commission (SEC). This represents a substantial sum for a company requiring significant capital to initiate vehicle production.
Finally, IBM’s infrastructure services division has been established as an independent entity named Kyndryl – a name perhaps reminiscent of Beedrill’s ancestor – and is generating considerable revenue, as reported by Ron Miller. According to our sources, Kyndryl “positions itself as a consultancy assisting established businesses in their transition to contemporary operational methods,” a reasonable assessment.