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Tech for a viral age

Fully Charged
Bloomberg

Hey y'all, it's Austin. While Covid-19 continues to ravage population centers and government phase-in programs sputter, there's at least one sliver of silver lining: Radical technology advances are sweeping across the planet at unprecedented rates. The pandemic has forced businesses to adapt swiftly or risk bankruptcy, a do-or-die dynamic that's catalyzed generational upgrades to hardware and software not over the course of years, but mere months. 

Restaurants big and small, long stubbornly reliant on phone takeout orders to avoid online service fees, are at last integrating modern point-of-sale terminals such as Toast and DoorDash Inc.'s CaviarUber Technologies Inc. and other artificial intelligence developers are refitting their facial recognition systems to function even while users are sporting surgical masks, and ensure drivers are wearing them. And remote productivity and educational tools from Alibaba Group Holding Ltd., Tencent Holdings Ltd., and Alphabet Inc. are booming.

We noted in this space in April that tech adoption was accelerating, now Covid-19 is also altering the hardware we use. Old-school desktop and laptop PC sales are ticking upward as more consumers have come to depend on their home offices. It's possible novel norms around social distancing will prove a boon to virtual reality and augmented reality products. Zoom Video Communications Inc., meanwhile, has witnessed so much growth in its streaming platform that it's launching a "Hardware as a Service (HAAS)" program, a play on its SAAS counterpart, to lure in new subscribers. And Verizon has made a major effort to move toward "touchless retail" to speed up the checkout process and reduce chances for disease transmission (though, full disclosure: It didn't quite work when I tried it last week).

All this is great for consumer convenience, but will the technology improvements endure? Or will they either slow down or get "sunset," in Silicon Valley parlance, as the world goes back to its pre-coronavirus ways? There are signs of longer-lasting change. In June, Starbucks Corp., already a mobile payments juggernaut, revealed that it's doubling down on e-commerce and accelerating the U.S. development of smaller-format "Starbucks Pickup" store concepts. Likewise, in China, the company has been rolling out more express retail stores—prioritizing to-go purchases over seating coffee sippers.  

"While we had originally planned to execute this strategy over a three- to five-year timeframe, rapidly evolving customer preferences hasten the need for this concept," Starbucks Chief Executive Officer Kevin Johnson said.

Of course, not all of this tech will or should stick around after the virus subsides. Apple Inc.'s masked emojis and hand-washing guides, for example, will (hopefully) soon go the way of Microsoft Corp.'s Clippy and Jennifer Aniston and Matthew Perry-helmed Windows directions. Privacy loss is a significant hazard too, as more technology creeping into our lives inevitably gives corporations more opportunities to capture our data. Also of concern are the consequences of technology addiction, especially as digital tools increasingly supplant human-to-human connection during the pandemic.

Eventually we'll look back at this era as a time when tech consumed even more of the economy—but not quite all of it. While we're all self-quarantining, Covid-19 has forced Quibi Holdings LLC to stream their snack-size videos, meant primarily for smart phones, on old-fashioned TV screens.  Austin Carr

If you read one thing

In a bizarre series of events on Friday, Amazon sent an email to employees telling them to delete the Chinese-owned app TikTok from their phones due to "security risks." Then, several hours later, Amazon said the email had been sent "in error." Wells Fargo, meanwhile, told employees to delete the app, and didn't rescind the instructions. 

And here's what you need to know in global technology news

Facebook is weighing a plan to halt political advertising, Bloomberg's Kurt Wagner reported

Rivian Automotive, the electric-truck startup taking on Tesla with the backing of Ford Motor Co., has raised $2.5 billion in new funding round.

Tesla cut the price of its Model Y cars by $3,000. And Elon Musk has surpassed Warren Buffett on the Bloomberg Billionaires Index to become the world's seventh-richest person.

Shares of SoftBank reached their highest levels in two decades, after the company bought back about $2.7 billion of its own stock.

A class-action lawsuit alleges that LinkedIn was spying on users using the app on their iPhones and iPads. 

A cyrptocurrency mogul is installing security cameras around San Francisco, the New York Times reports

 

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