Under armor Uber Eats is giving up one of its large acquisitions, complaining about its free delivery terms for black restaurants, and Facebook is taking another step to restrict QAnon-related content. This is your daily crisis for October 30, 2020.
The big story: Under Armor sells MyFitnessPal
Five years after Under Armor acquired MyFitnessPal for $ 475 million, Under Armor is selling the diet and exercise tracking app to investment firm Francisco Partners for $ 345 million. In addition, the Endomondo platform acquired at the same time will be shut down.
Under Armor says it is taking these steps so it can focus its brand on its "target consumer – the focused performer." However, the drop in price suggests that there may be more going on here. Business may be suffering from the spotlight on companies like Peloton and Apple (with the Fitness + service coming soon) in the casual fitness category.
It's also worth noting that Under Armor isn't giving up digital products entirely – it will continue to run the MapMyFitness platform, including MapMyRun and MapMyRide.
The technology giants
Uber Eats is discriminated against for free delivery from black-owned restaurants. Uber claims it has received more than 8,500 arbitration requests as delivery fees for some black-owned restaurants were lowered through Uber Eats.
Facebook limits the spread of the hashtag "Save Our Children" over QAnon connections. For the past few months, these terms have provided some kind of harmless cover for the popular online conspiracy theory.
Reliance Jio Platforms, a leader with 400 million subscribers, is researching the expansion of services outside of India. The telecom operator, backed by Facebook and Google, said its finances have improved despite the pandemic.
Startups, Financing and Venture Capital
Daimler is investing in the lidar company Luminar to bring autonomous trucks to highways. The merger with the acquisition company Gores Metropoulos will also make Luminar a publicly traded company.
Nestlé to Acquire Healthy Meal Startup Freshly for up to $ 1.5 billion – Founded in 2015, Freshly is a New York City-based startup that delivers healthy meals to your home in weekly orders that are then delivered in minutes cookable in the microwave or oven.
B8ta remains optimistic about IRL shopping with the new acquisition – B8ta offers shelf space for unique digital products.
Advice and analysis of extra crunch
New GM partner Terri Burns has a simple investment thesis: Gen Z – Burns is the company's youngest partner and the first black woman to hold this role.
Is the Great 2020 Tech Rally Slowing Down? – What if COVID-19, civil unrest and hyped reviews collide?
(Reminder: Extra Crunch is our membership program that aims to democratize information about startups. You can sign up here.)
Teachers leave schools. Will they come to startups next? – Leaving teachers is a loss to public schools, but an opportunity for start-ups to gain a stake in the changing teacher economy.
Big Tech's “black box” algorithms are facing supervision by the regulatory authorities as part of the EU plan. Major internet platforms will have to open their algorithms to oversight of the rules in line with the proposals that European legislators are expected to introduce next month.
AOL founder Steve Case, who was involved early on in Section 230, says it is time to change that: "A stronger dialogue between innovators and policy makers will indeed be crucial in this third Internet wave," said Case.
The Daily Crunch is TechCrunch's round-up of our greatest and most important stories. If you'd like this to be delivered to your inbox around 3:00 p.m. Pacific time each day, you can sign up here.