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NEWS: Anthropic targets $20B+ valuation, Flexport chaos & more! | E1823

This Week in Startups

Thu Oct 05 2023



DoorDash Dine Out Feature:

  • DoorDash is testing a new feature called Dine Out, which offers users cash credit for dining out at local restaurants.
  • Users can earn DoorDash credits by checking in and dining at participating restaurants.
  • The feature aims to incentivize customers to dine at local establishments and build loyalty with those restaurants.
  • By offering rewards for dining out, DoorDash hopes to strengthen its relationship with partner restaurants and potentially secure exclusivity deals.

Flexport CEO Transition:

  • Ryan Peterson stepped down as CEO of Flexport in June 2022 and transitioned into the role of Executive Chair.
  • Dave Clark, a former Amazon executive, was hired as the new CEO of Flexport.
  • However, in September 2023, Peterson announced that he would be returning as CEO and Clark resigned on the same day.
  • The transition back to Peterson's leadership came after a significant drop in revenue for Flexport due to challenges in the shipping industry during the pandemic.
  • There are conflicting reports about the reasons behind Clark's departure and tensions between him and Peterson.

Amazon Investment in Anthropic:

  • Amazon has made an investment deal with AI startup Anthropic, led by Dario Amodei.
  • The initial investment from Amazon is $1.25 billion, with potential for an additional $2.75 billion investment if triggered by either party.
  • As part of the deal, Amazon will offer early access to Anthropic's models through its AWS platform.
  • This partnership aims to enhance Amazon's AI offerings and provide growth opportunities for Anthropic.

Reasons Behind Amazon's Investment:

  • The strategic investment allows Amazon to collaborate with Anthropic on AI development and gain insights into cutting-edge technologies in the field.
  • It provides an opportunity for Amazon to use Anthropic's models within its own services, such as chatbots or generative AI playgrounds like Amazon Bedrock.

Loyalty Programs:

  • Lena Kahn claims Amazon created Prime to increase customer loyalty.
  • Similar programs include airline miles, Costco membership, and DoorDash Rewards.

Gamification and Loyalty:

  • Gamification and loyalty programs effective in increasing engagement and usage among consumers.
  • Speaker mentions games like Farmville as an example of how gamification works on humans.
  • Loyalty programs tap into human desire for rewards and incentives.

Startups Building on Each Other's Ideas:

  • Startups often build on each other's ideas, leading to innovative features or services.
  • Check-in app trend started with FourSquare but did not reach expected potential. However, similar concepts can resurface successfully later on.
  • Yelp now incorporates discovery and restaurant recommendations, making it more comprehensive.

Importance of Packed Restaurants:

  • Speaker expresses belief that life is better when restaurants are packed with people.
  • Negative impact of empty restaurants in San Francisco; hopes initiatives like DoorDash's "Dine Out" will bring more customers back.

Expanding Services in Transportation Industry:

  • Uber, DoorDash, Airbnb likely to expand services beyond current offerings in transportation and food delivery.
  • Companies could explore areas such as travel, manual labor services, payments systems, trains, flights.

New York City Subway:

  • Speaker shares positive experience using Apple Pay on the New York City subway.
  • Expresses excitement about being able to use digital payments instead of traditional methods like MetroCards.