Google Founders Sergey Brin And Larry Page Step Down From Top Roles
Google co-founders Sergey Brin (left) and Larry Page announced Tuesday they are stepping down from their leadership roles but will remain board members of Alphabet, Google’s parent company.
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Updated at 6:07 p.m. ET
Ending an era at the Internet’s biggest search company, Google co-founders Sergey Brin and Larry Page are leaving their leadership roles and CEO Sundar Pichai will become chief executive of both Google and its parent company, Alphabet.
Page is stepping down as CEO of Alphabet, while Brin is resigning as its president. They will remain board members of Alphabet, a company that oversees not just Google but also research into artificial intelligence and self-driving cars.
Page and Brin founded Google in 1998 when they were Stanford students. They made Google into one of the world’s largest, most profitable companies, dominating online search, digital advertising and video.
“We’ve never been ones to hold on to management roles when we think there’s a better way to run the company,” they wrote in a letter Tuesday. “And Alphabet and Google no longer need two CEOs and a President.”
In an email to Google employees, Pichai said that in his more than 15 years with Google, “the only constant I’ve seen is change. This process of continuous evolution — which the founders often refer to as ‘uncomfortably exciting’ — is part of who we are.”
The restructuring at the top of Google comes as at time of increased turmoil for the Internet giant.
Google, the company that was known for the motto “don’t be evil,” has been known for its open and freewheeling culture, with employees encouraged to speak out. But lately, management has been cracking down on dissent and criticism.
Google fired four engineers last week for accessing internal information. But the workers said they lost their jobs over their labor-organizing efforts. They said they will file a complaint with the National Labor Relations Board.
Last year, thousands of Google workers around the world walked out in protest of sexual harassment and bad behavior by executives.
Google, along with Facebook and Amazon, is under scrutiny into whether it’s too powerful.
Regulators in the U.S. and Europe are looking into how dominant Google is in search and advertising. Some critics are even calling for the company to be broken up. There’s no indication that any of this is connected to Page and Brin stepping aside. It’s just another sign of how the company is changing.
Page and Brin acknowledged that Google is no longer the same company they founded. “Since we wrote our first founders’ letter, the company has evolved and matured,” they wrote Tuesday.
Read MoreBrazil, Argentina Now On Receiving End Of Trump Tariffs
President Trump is abruptly reimposing tariffs on steel and aluminum imported from Brazil and Argentina.
Trump announced the move in a pair of tweets Monday, saying he was acting in response to “massive devaluation” of the two countries’ currencies. Brazil and Argentina had been exempted from Trump’s 25% tariff on imported steel and his 10% tariff on imported aluminum since May of last year.
Brazil is a major supplier of imported steel to the U.S. The declining value of currencies from Brazil and Argentina has given their exports an advantage in international markets, which Trump said is bad for U.S. farmers.
During the global trade war, China has cut back on purchases of U.S. farm goods such as soybeans and turned to South America for alternative supplies.
In his tweets, Trump also called on the Federal Reserve to cut interest rates further in hopes of weakening the dollar, which would give a lift to U.S. exports.
“Lower Rates & Loosen,” Trump wrote, arguing that a strong dollar “makes it very hard for our manufacturers & farmers to fairly export their goods.”
…..Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies. This makes it very hard for our manufactures & farmers to fairly export their goods. Lower Rates & Loosen – Fed!
— Donald J. Trump (@realDonaldTrump) December 2, 2019
While interest rates do affect the value of the dollar, the Federal Reserve has not traditionally been guided by that. Instead, the central bank aims for stable prices and maximum employment, leaving currency policy to the Treasury Department.
Trump has repeatedly urged the Fed to cut interest rates. The central bank has cut rates three times since July, by a total of 0.75%. Fed officials are widely expected to leave rates unchanged when they meet next week.
Trump originally imposed the steel and aluminum tariffs in March of 2018, relying on authority from a seldom-used law from the 1960s, designed to protect domestic industries deemed vital to national defense.
The move did give a temporary lift to American steel and aluminum makers. However, it also raised prices for U.S. companies that use the metals. Since then, steel prices have fallen amid slumping demand. U.S. Steel announced layoffs this fall and posted a third-quarter loss of $35 million.
‘Immigrant Food’ Restaurant, Trump’s New Neighbor
NPR’s Don Gonyea speaks with the co-owners of Immigrant Food, Chef Enrique Limardo and Peter Schechter, about their new restaurant, which is located one block from the White House in Washington, D.C.
DON GONYEA, HOST:
Just before Thanksgiving, I broke away from my desk at NPR headquarters and headed to a new restaurant here in Washington that’s been getting some attention lately, mainly for its name and location.
We are one block from the White House on Pennsylvania Avenue. It’s right over there. The restaurant behind me is called Immigrant Food. It’s a place that celebrates the thousands of immigrants who have helped make D.C. the city it is, with flavors from Ethiopia, El Salvador, China, Iran, India. That’s just to name a few. So we wanted to find out more about this restaurant that refers to itself as cause casual, so we’ve come to chat with two of the co-owners. Let’s go in.
PETER SCHECHTER: We wanted to create a restaurant that wore pride of immigration and immigrants right on its sleeve, right on its name – you know, a celebration of the food and the gastronomies that immigrants brought to America throughout the centuries.
ENRIQUE LIMARDO: It’s like combining 20 restaurants in just one place.
GONYEA: That’s award-winning chef Enrique Limardo. He’s created the menu at Immigrant Food. We heard first from another co-owner, Peter Schechter. He’s a longtime political adviser and global policy expert. There’s a third co-owner as well, Ezequiel Vazquez-Ger. All three owners come from immigrant backgrounds. They opened the restaurant in part because of the rise of anti-immigrant rhetoric.
SCHECHTER: We now live in a country where at least a portion of the country feels that sort of we’ve got to be closed to immigrants. And so we thought that it would be a wonderful thing to create a restaurant, in part because people unite around food. Our hashtag is #unitedatthetable.
GONYEA: The name is so simple it is almost generic. It is generic – Immigrant Food.
LIMARDO: Yeah. It’s Immigrant Food. It’s nothing more to say. That is exactly what we are doing here. So when Peter brought the idea, I just fall in love because as an immigrant from Venezuela, I just left my country because of the situations, political and economics. And I came to America because it’s the land of opportunities and pursuing the – you know, the American dream and all of that. So I just fall in love with the idea.
GONYEA: But we’re sitting here – as we said, the White House is only a block away. Immigration has become one of those issues that people argue about, and it seems the volume is so high. Do you try to stay clear of the politics? Are you embracing it? Are you taking another path?
SCHECHTER: We want very much that this restaurant be all about values. We’re trying to espouse a fundamental value because we believe that America’s story is the story of immigrants. And so we want to push those values forward because we believe that immigrants are fundamental not only to the past, to the law of what America is, but to the future of what America will be.
Americans continue to be the lifeblood, you know, of energy, the innovation. If you look at the Nobel science prizes that America has received, 40% of them have gone to people who were not born in America and immigrated to America. If you look at the CEOs of some of the companies that we love, whether it’s Tesla or Amazon, these are people who are either immigrants or whose parents were immigrants.
GONYEA: The restaurant is described as cause casual, in part because it also acts as an educational space. The owners donate meeting space within the restaurant to nonprofits dedicated to immigrant services.
SCHECHTER: The space we’re sitting in right now, the upstairs of the restaurant, is something that we will donate to the organizations for English classes or citizenship classes or board of director meetings – whatever they need.
GONYEA: Customers are also given the option to donate to these groups. At the end of the day, though, this is a restaurant with an award-winning chef running the kitchen. And he makes sure the food is also part of the conversation.
So in describing this place to people, I’ve been saying you can get Ethiopian, and you can get Salvadoran, you can get Iranian food. But I’m not correct in saying that. You can get those things, but they may not be in the form that you – yeah.
LIMARDO: One other thing that I always said – that we don’t want people just to attach the idea that it’s very traditional from Ethiopia, for example. Or this is what’s prepared by the nonna (ph), my nonna in Italy. No. We want that people just remind those flavors and reminds the idea from Italy or from Greece or from China or from Vietnam. And they are going to expect something very powerful because it’s the mixture of those cultures is very strong. And it’s a celebration in the palate. You know, it’s explosion in the palate.
GONYEA: And Limardo says this fusion of flavors works.
LIMARDO: It’s like chemistry. I just – with this challenge and this concept, I just realize in this point of my career that you can fusion almost everything if you use the right amount, and it’s going to be delicious.
GONYEA: Chef Enrique Limardo and Peter Schechter of Immigrant Food, a new restaurant just steps from the White House here in Washington, D.C.
Copyright © 2019 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.
UAW Reaches Tentative Labor Agreement with Fiat Chrysler
Jeep vehicles are parked outside the Jefferson North Assembly Plant in Detroit on Feb. 26, 2019.
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Fiat Chrysler Automobiles reached a tentative labor agreement with the United Auto Workers on Saturday, becoming the last of the big three Detroit automakers to arrive at a deal with the labor union this year.
The four-year agreement, which covers hourly workers at the company, would secure a total of $9 billion worth of investments involving 7,900 jobs, according a statement from the UAW. The agreement must still be approved by the union’s national council, and then pass a ratification vote by the company’s 47,000 union-represented workers.
“FCA has been a great American success story thanks to the hard work of our members. We have achieved substantial gains and job security provisions for the fastest growing auto company in the United States,” said Rory Gamble, the acting president of the UAW, in a statement.
Fiat Chrysler confirmed the agreement in a statement but did not provide additional details on the outlines of the deal.
The tentative agreement comes at a moment of upheaval for the UAW. Earlier this month, the union’s president, Gary Jones, abruptly resigned in the face of allegations that he misused union funds. Jones has not been charged with any crime. His attorney told the Detroit News that he resigned in order to avoid distracting “the union from its core mission to improve the lives of its members and their families. ”
The day Jones resigned, General Motors filed suit against Fiat Chrysler alleging that the company bribed UAW officials to get favorable labor contracts. Fiat Chrysler said in a press release that GM’s lawsuit was “without merit” and dismissed it as an attempt to disrupt its recent agreement to merge with French automaker Groupe PSA — a merger which if finalized, would make the combined company the fourth largest carmaker in the world by production volume.
The UAW said a ratification vote on the agreement with Fiat Chrysler could come as soon as Dec. 6. If approved, the union will avoid a replay of its bruising negotiation earlier this year with General Motors. Those talks gave way to a grueling 40-plus-day strike that brought operations to a halt and cost GM — and the companies that supply it — millions.
Toys R Us Reopens 2 Stores Under New Ownership After Painful Bankruptcy
Toys R Us has reopened just two stores after a painful bankruptcy. This Black Friday will be its first under new ownership.
ARI SHAPIRO, HOST:
Could Geoffrey the giraffe be back in business? For decades, a visit to Toys R Us was an indispensable part of holiday shopping for kids. That is, until last year, when the company announced it would be closing its doors for good.
NPR’s Darius Rafieyan paid a visit to its new flagship store.
DARIUS RAFIEYAN, BYLINE: Like many people, Jennifer Bain has fond memories of running around a Toys R Us store.
JENNIFER BAIN: I was a Toys R Us kid when I was younger. I definitely wanted to make sure that that was part of my daughter’s life, and I was really sad to see it go.
RAFIEYAN: I met Bain here at the new Toys R Us flagship store in Paramus, N.J. It’s part of a plan to open 10 new stores over the next year.
(SOUNDBITE OF NERF GUN FIRING, LAUGHTER)
RAFIEYAN: Her 5-year-old daughter Charlotte is standing inside a plexiglass enclosure trying out the latest Nerf blaster.
How do you like it?
CHARLOTTE: I loved it. Can I do it again, mommy?
BAIN: Absolutely.
RAFIEYAN: This Nerf target range is part of what Toys R Us is calling experience-driven retail. The idea is to encourage kids to actually pick up the toys and play with them. The company doesn’t have hundreds of stores like Walmart or same-day delivery like Amazon, so it’s trying to compete on fun. That strategy is the brainchild of Richard Barry, a former Toys R Us executive and the current CEO of Tru Kids Brands, which now owns the Toys R Us name.
RICHARD BARRY: I’m a 34-year Toys R Us employee, so hearing that the company was going through the troubles was extremely distressing.
RAFIEYAN: The original Toys R Us filed for bankruptcy back in 2017 and was ultimately forced to close all of its stores, some 700 of them. That company had been slow to adapt to online shopping, and it struggled to manage a sprawling real estate portfolio of hundreds of underperforming stores. And all of that was made worse by a disastrous private equity buyout that left the company billions of dollars in debt.
Barry is hoping that this smaller, more immersive retail concept will help the new company avoid some of those pitfalls.
BARRY: This is a very different store from those of the past. It’s extremely experiential. We’ve got a treehouse. We have a theater in the store. Every different spot in the store has a place where you can engage with toys and products.
RAFIEYAN: But Liz Dunn, a retail analyst at Pro4ma, is skeptical. She says many brick-and-mortar retailers are trying to reinvent the shopping experience. Delivering something that actually gets people to put down their phones and come into a store can be easier said than done.
LIZ DUNN: Just calling it experiential is not enough. You have to really, really wow consumers.
RAFIEYAN: The new store has its fans, though. For Stacey Wilkins, who spoke to me as her 7-year-old ran around the treehouse, this new Toys R Us is a godsend.
STACEY WILKINS: We needed a toy store like this, especially – my son is autistic. So being able to play and build and make things and let them be able to use their creativity is a wonderful thing.
RAFIEYAN: But if the company wants to avoid the fate of its predecessor, it still needs to show it can turn all that fun into actual sales.
Darius Rafieyan, NPR News, Paramus.
(SOUNDBITE OF PHOENIX’S “DEFINITIVE BREAKS”)
Copyright © 2019 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.
Supreme Court Hears Case Involving Blackbeard’s Ship, State And Property Rights
The Supreme Court recently heard arguments in a case that involved both a 300-year-old pirate ship — and a contemporary fight between two powerful forces: states’ rights and property rights.
ARI SHAPIRO, HOST:
The Supreme Court recently heard arguments in a case that involved both a 300-year-old pirate ship and a contemporary fight between two powerful forces in American law. Jacob Goldstein from our Planet Money podcast explains.
JACOB GOLDSTEIN, BYLINE: The ship belonged to the pirate Blackbeard. It sunk off the coast of North Carolina in the early 18th century. The person who brought the case to the Supreme Court is an underwater videographer named Rick Allen. Allen started filming the excavation of Blackbeard’s ship in the late 1990s.
RICK ALLEN: The first time I went down, it was like climbing into a washing machine, filling it with tea or coffee and then turning it on. There’s a lot of current. The visibility’s terrible. So I didn’t see a lot of the wreck. I just pretty much hung on for dear life.
GOLDSTEIN: But year after year for more than a decade, Allen kept diving and filming there.
ALLEN: We’re probably talking about 1,000, 2,000 hours on the wreck site.
GOLDSTEIN: The rights to the ship were owned by the state of North Carolina. Rick Allen had signed a deal where he would pay for the filming out of his own pocket, and he would own the copyright to the footage so he could license it to museums and for documentaries. The legal trouble started in 2013 when, Allen says, the state started posting his pictures and videos without his permission. The fight wound up in the Supreme Court this fall.
(SOUNDBITE OF ARCHIVED RECORDING)
JOHN ROBERTS: We’ll hear argument next in Case 18-877, Allen v. Cooper.
GOLDSTEIN: Allen’s argument relied heavily on a law Congress passed in 1990. It was called the Copyright Remedy Clarification Act. And the law said that federal copyright law applies to state governments just the same way it applies to everybody else. In other words, if a state posts your videos without permission, you can sue the state for damages just like you can sue anybody else.
North Carolina’s counterargument came down to this. That federal law Allen is relying on – it is unconstitutional, and the Supreme Court should strike it down. The state’s lawyer, Ryan Park, articulated the basis for North Carolina’s case in the first three words of his argument.
(SOUNDBITE OF ARCHIVED RECORDING)
RYAN PARK: State sovereign immunity is a fundamental feature of our Constitution’s structure.
GOLDSTEIN: State sovereign immunity – that’s it. That is North Carolina’s whole case, and it is a pretty strong case – strong enough to make it all the way to the Supreme Court. So here is what state sovereign immunity means. State just means any state in the union. Sovereign immunity means in most circumstances, you are not allowed to sue the federal government or state governments for money damages.
Ryan Park, North Carolina’s lawyer, suggested that sovereign immunity really does come down to money.
(SOUNDBITE OF ARCHIVED RECORDING)
PARK: I think the important understanding that the founders had is that when you sue a sovereign, on the opposite side of the judgment are the people and the people’s money.
GOLDSTEIN: When you’re suing the state, you are suing the people. You’re suing for taxpayer dollars. And Park is saying we, the people of North Carolina – not the federal government – should be allowed to decide when and whether we are on the hook for damages in court.
In the end, this case comes down to a fight between states’ rights – North Carolina’s sovereign immunity – and property rights – Rick Allen’s copyrights on the videos of Blackbeard’s ship. A decision in the case is expected sometime before the end of the court’s term next June.
Jacob Goldstein, NPR News.
(SOUNDBITE OF DAWN AVERY’S “ZUSESKA (SNAKE) BATTLE”)
Copyright © 2019 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.
Following Backlash, Twitter Offers to ‘Memorialize’ Accounts Of The Deceased
Twitter announced Wednesday it will allow relatives to archive the accounts of deceased loved ones.
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Twitter will allow people to permanently archive and memorialize the accounts of deceased loved ones. The company received backlash this week after news broke that it would delete accounts that had not been logged in to in over six months.
A company spokesperson originally said inactive accounts would be removed from the platform starting in December as part of its “commitment to serve the public conversation.”
The announcement sparked a mass panic.
Numerous inactive users returned to the platform for the sole purpose of saving their accounts. Popular K-pop star Taeyang tweeted twice Wednesday, his first tweets since 2016. His messages were simple: One was a photo of a sun-shape balloon; the other just said, “Hello.”
Hello
— TAEYANG (@Realtaeyang) November 27, 2019
However, to many, the initial plan to delete inactive accounts wasn’t about losing a handle. It meant they might lose a digital remnant of their loved ones.
Harris Wittels, a comedian and television writer, died four years ago, yet his Twitter account was active Tuesday. His sister, Stephanie Wittels, logged on after she read that inactive accounts would be culled.
“Twitter is going to start deleting inactive accounts in December, and it would be a goddamn tragedy if this account got sucked into oblivion,” Wittels tweeted from her brother’s account. “So I’m tweeting to ensure that doesn’t happen.”
For others, it wasn’t possible to log on and tweet again. Drew Olanoff wrote in TechCrunch that he doesn’t have his late father’s password and thus cannot preserve his “quirky nerdy tweets.”
“It’s my way, odd or not, of remembering him. Keeping his spirit alive. His tweets are timestamped moments that he shared with the world,” Olanoff wrote.
Horrified and scared to think I’ll lose traces of my dead partner, or my dead friends. It should be possible to free up usernames without eradicating the work and words of those who are no longer around.
— General Elainovision 2019 (@scattermoon) November 26, 2019
Twitter CEO Jack Dorsey tweeted Wednesday the company miscommunicated and is working to clarify its message.
Later, the company’s support account apologized for the confusion. It said the account removals will only occur in the European Union and only after a way to archive accounts is created.
“We’ve heard you on the impact that this would have on the accounts of the deceased,” the company tweeted. “This was a miss on our part. We will not be removing any inactive accounts until we create a new way for people to memorialize accounts.”
It is not clear when this function will become available.
Until then, Internet historians are offering solutions to those worried about their loved ones. Volunteers with The Internet Archive, a nonprofit digital library, created a public form that will collect the Twitter handles of deceased people and archive their accounts to the best of their abilities.
Paolo Zialcita is an intern on NPR’s Newsdesk.
737 Max Scandal Cuts Boeing’s Once Rock-Solid Image
A Boeing 737 MAX aircraft owned by Ryanair parked at Boeing’s Renton, Washington factory in October. All 737 Max planes remain officially “grounded” worldwide.
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In air travel, reputation is everything. The Boeing Company continues to find this out the hard way as it struggles through one of the worst crises in its 103-year history– the crashes of two its new 737 Max airplanes within five months that killed 346 people.
For decades, Boeing’s reputation among airline pilots was second to none.
“I’ve been (flying) on Boeing aircraft for over 33 years,” says Captain Dennis Tajer, a 737 pilot for American Airlines. Boeing planes saved his life when he flew in the military, he says. Pilots had a saying that showed their faith in the company’s aircraft– “If it ain’t Boeing, I ain’t going.”
But that high level of confidence is in the past. Ask Tajer about his trust in Boeing now, and he says, “Oh, it’s been shaken. Absolutely. Boeing is still an incredible company but they horridly fouled up this aircraft.”
Tajer, who is a spokesman for American’s pilots union, says it’s not just that Boeing installed a flawed flight control system that forced both planes into uncontrollable nose dives, but pilots are outraged because the company never told pilots the system even existed. That outrage only grew when Boeing initially defended the design and suggested pilot errors were more to blame for the crashes. This was compounded by revelations that Boeing officials knew about the systems flaws before the crashes and appeared to have downplayed safety concerns.
“These are just toxic liquids poured over the trust relationship,” says Tajer. “It doesn’t mean we can’t get there (and have faith in Boeing again). It just means that it’s more than ‘trust but verify,’ we’re down to ‘show me.'”
Flyers Faith Rattled
With pilots’ faith in Boeing shaken, who can blame frequent flyers like Wendy Rheault who before boarding a recent flight from Chicago’s O’Hare airport to Sacramento said she doubts she’ll fly on a 737 Max even if aviation regulators recertify the planes as safe.
“I think I would be uncomfortable flying it,” says the health care executive. “I would have to kind of wait for a while (after it’s flying again).” She says she thinks she’d have trouble trusting that the plane is safe.
Jay Hanmantgad of London, who was passing through O’Hare on his way to Ottawa says he would fly on a Max but only after European, Canadian and other international regulators recertify it to fly.
And he says his once high opinion of Boeing has changed.
“Yes, it certainly has,” says Hanmantgad. It appears to him that the company hurried the plane through the development and certification process in an effort to keep costs down and reap higher profits, “which is clearly a criminal offense, I would say. So they need to be held accountable for that.”
A recent survey of about two thousand air travelers shows that more than 80-percent say they would avoid flying on a 737 Max in its first six months back, and more than half say they’d pay a higher fare just to avoid flying on a Max.
Even if the FAA and other aviation regulators recertify the 737 Max as safe to fly again, airlines and their flight crews can refuse to fly the plane if they’re not convinced.
A Storied Safety Reputation In Jeopardy
“I think it’s a really critical moment for Boeing as a corporation,” says Tim Calkins, an expert in branding and crisis management and a professor at Northwestern University’s Kellogg School of Management. He says Boeing needs pilots, flight attendants and their airlines to vouch for the plane’s safety because Boeing’s own credibility is lacking.
“The hard part right now is that there’s very little Boeing can say that people will really believe,” says Calkins. “If Boeing says the plane is safe, I’m not sure I believe that because they were saying that before.”
To that end, Boeing officials have been regularly meeting with aviation regulators, airlines, pilots and other key groups as they continue to develop and test software fixes for the Max planes. The company is reaching out in other ways, too, taking out full page newspaper ads to express condolences to the families of those who died in the two crashes, and with promotional videos featuring a diverse array of Boeing employees offering testimonials to the company’s safety culture.
“When I take a 737 Max for a test flight, it’s deeply important that I do my job right,” says Boeing’s chief 737 test pilot Jennifer Henderson in one of the videos. “When the 737 Max returns to service I will absolutely put my family on this airplane.”
But many people in aviation circles aren’t convinced, with some commenting in social media forums where the videos are posted that the employees probably had little choice but to sing their employer’s praises.
“Well, I think she could not say it would be unsafe,” quipped one poster on a Facebook page for Boeing enthusiasts.
A Public Relations Disaster
Despite hiring the heavyweight PR firm Edelman to bolster crisis communications efforts, the campaign to win back the trust of air travelers thus far appears to have fallen flat. CEO Dennis Muilenburg’s recent testimony before two Congressional committees has been widely criticized as he struggled to answer questions that many industry insiders felt he should have been prepared for.
“I think Boeing needs a come to Jesus moment and I haven’t seen it happen yet,” says Christine Negroni, an aviation writer and author of book about plane crash investigations called “The Crash Detectives.”
She says Muilenburg and other Boeing officials haven’t been fully forthcoming in explaining their missteps in the development of the 737 Max and what the company knew about the potential problems with the plane before the crashes. Negroni says they still won’t acknowledge deeper and systemic problems inside the company.
“Boeing’s in a pickle and Boeing needs to recognize it’s in a pickle and that might be the hardest part,” Negroni says. “I said it’s a ‘come to Jesus’ moment. It’s (also) a, ‘do you realize you’re a sinner and what are you going to do to fix it’ moment.”
Despite its problems, Northwestern’s Tim Calkins says the company can still reclaim its once sterling reputation..
“If you take the right steps today, I think Boeing can come across as a brand that is still strong, is still trusted, and maybe is better for all of this,” Calkins says. “But if you don’t (take the right steps), it creates deep, long term problems for the company.”
Boeing may be able to fix the problems that brought down two of its 737 MAX planes, but as it tries to win regulatory approval to return the Max to service early next year, the company faces the additional challenge of rebuilding its once lauded reputation for safety.
Uber Stripped Of Its License To Operate In London
Uber is fighting for survival in London after the city’s transportation agency said it would not renew the company’s operating license, citing safety concerns. This adds to a difficult year for Uber.
AILSA CHANG, HOST:
Uber has been stripped of its license to operate in one of its most important cities, London. The city’s transportation agency says Uber put passengers at risk through a pattern of failures. The decision is another big blow for the company in what has already been a difficult year. NPR’s tech correspondent Shannon Bond reports.
SHANNON BOND, BYLINE: London is one of Uber’s biggest markets. It’s one of five cities around the world where the ride-hailing company takes in a quarter of its fares from customers.
DANIEL IVES: London’s the heart and lungs of its European operations, biggest city in Europe.
BOND: Daniel Ives is an analyst at Wedbush Securities. By his estimate, the British capital accounts for 3- to 5% of Uber’s total ride-hailing sales. But that’s now at risk of vanishing.
Transport for London, the city’s transit agency, says it won’t renew the license Uber needs to run its car service there. The British agency says Uber doesn’t meet its standard of being a, quote, “fit and proper” company. The agency says unauthorized drivers manipulated Uber systems to upload their own photos to other drivers’ accounts. That resulted in 14,000 uninsured trips where passengers had no idea their driver had not been vetted by Uber. In at least one case, a driver whose license had been revoked was still able to drive for Uber.
Uber says it has fixed the flaw that allowed this to happen. It says it’s introducing facial matching in London to confirm drivers’ identities. But Uber has had safety issues for years as it has raced to grow quickly.
Ives, the analyst, says the British agency’s action against Uber reflects a big problem.
IVES: Safety is the lifeblood of Uber. If consumers don’t feel safe within the platform, there’s much broader issues.
BOND: For Uber, what’s at risk is not just the money it makes in London. It’s the precedent that could be followed by other big cities.
Bradley Tusk is a former adviser to Uber who helped the company fight regulations in New York in its early days. He still owns Uber shares.
BRADLEY TUSK: For a company that’s already struggling financially, this is yet another difficult blow. But beyond that, London is one of the most widely seen cities in the world, and what happens in London is noticed everywhere.
BOND: The London license denial is just the latest black eye for Uber this year. For example, the company has had to limit how many drivers it has in New York after losing a legal battle with the city. Uber is already losing billions of dollars a year, and its stock price has fallen sharply from when the company started trading publicly in May.
Ives, the analyst, says it’s tough to be an Uber shareholder.
IVES: Since the IPO, it’s really been a horror movie. And I think this is something that investors are starting to get more and more frustrated with the company, and this latest London issue is another overhang now over the Uber stock.
BOND: Uber says it will appeal the decision. In the meantime, its 45,000 London drivers will still be picking up passengers while the company fights to stay in the city.
Shannon Bond, NPR News.
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The Powerlessness Of Nigeria’s Tech Startups
An employee walks past a power plant’s electricity pylons in Lagos, Nigeria. Power shortages are particularly a problem for Nigeria’s booming tech industry, which accounts for nearly 14% of the country’s GDP.
Georgie Osodi/Bloomberg/Getty Images
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Georgie Osodi/Bloomberg/Getty Images
Chris Oyeniyi runs a small tech startup in Lagos, Nigeria. It’s a smartphone app called KariGO that he says is “like Uber but for trucks.” Businesses or factories can use it to hire big semitrucks to move their products around the country. He started it in 2016 and now has 11 office staff members, and he owns a few dozen trucks.
But unlike Uber, which operates 24/7, Oyeniyi says the app is limited to normal business hours. He wants to keep it open around the clock but faces what has so far been an insurmountable obstacle. It’s not a staff shortages, government regulations or software glitches.
“One thing will not allow us to do that,” he says. “Electricity.”
Oyeniyi says he pays about $800 every month to keep the lights and computers on in his small office. The reason for the high cost? Power from the government-run electrical grid is cheap but goes out so often — multiple times a day, every day — that he is forced to rely on a loud, fume-belching, diesel-sucking generator. It’s too expensive to fuel and maintain beyond the bare minimum number of hours.
If the government power grid worked all the time, he says, his electrical bill would be closer to $100.
Power shortages are common in many low- and middle-income countries. A United Nations report this fall found that 840 million people live without access to reliable electricity. Most of them are in Africa, and most live in rural areas, beyond the reach of the grid.
But the problem of power outages strikes cities as well — and can take an especially harsh toll on the economy, cutting off the productivity of businesses and government agencies alike, and forcing entrepreneurs like Oyeniyi to pour capital into backup generators instead of investing in staff or equipment. In Lagos, the grid is so unreliable that most homes and businesses have a generator, and the city is constantly filled with the noise and pollution from millions of people creating their own power.
Power shortages are particularly a problem for Nigeria’s booming tech industry, which is the biggest on the continent and accounts for nearly 14% of the country’s GDP, according to a survey of 93 Nigerian tech startups released this month by the Center for Global Development. The survey found that 57% of startups, most with fewer than 10 employees, find electricity problems to be a “major” or “very severe” obstacle to their business, beating out other challenges such as corruption, taxes and government red tape. (Access to finance and political instability were also top-ranking obstacles.)
Vijaya Ramachandran, the center’s research manager and lead author of the report, says the electricity problem is kneecapping a sector that offers perhaps the most promising opportunity to create skilled, high-paying jobs for young people and diversify the country’s volatile economy away from its traditional reliance on oil and gas.
“This is a very significant burden for the local tech sector,” she says. “It’s a very basic business environment problem that needs to be fixed.”
It’s not just the cost: Many startups face the constant risk of a blackout suddenly wiping out important digital work, interrupting critical software updates, simply wasting employees’ time or forcing them to work without air conditioning in the sweltering Lagos heat.
“If there’s no power, you can’t do work,” says Tomiwa Aladekomo, editor of the Nigerian industry journal TechCabal. “Even if you have a backup system, it’s a demoralizer for employees and a pretty big productivity tax.”
Jonathan Phillips, director of the Energy Access Project at Duke University, who was not involved in the survey, says Nigeria’s power problems date back decades to the country’s early days of independence, when the government set up a heavily subsidized electrical grid. The energy system was often a prime target for corruption, he says, and has never been able to generate enough profit to offset the massive cost needed to build enough new power plants and distribution lines to keep up with the country’s rapidly growing population. As a result, he says, Nigeria has one-fifth the total power supply of North Carolina, with a population of 200 million people, 20 times the state’s — and blows through up to $8 billion per year on diesel fuel for generators.
“Nigeria is the poster child on how power access, especially in the business area, is just such a mega-constraint to growth,” he says. Especially for startups, he says, “they’ve got 99 problems and they just don’t need electricity to be one of them.”
For some startups, one solution is WeWork-style co-working spaces that allow them to pool their energy bills. Tunde McIver runs a tech co-working space in Lagos and says many of his clients come to him because they need to pass off the headache of dealing with electricity to someone else. But even a co-working space can’t fully surmount the generator cost.
“Tech is an around-the-clock business,” he says. “But [because of the high cost of power] you can’t keep the office open 24 hours. You just can’t. So it’s an inhibition [for business growth], definitely.”
Solar power is another potential solution and is increasingly common on residential rooftops in the city. But McIver says it can’t provide enough juice to power a whole office of computers, lights and air conditioners. So ultimately, the problem comes down to money: Either pay the generator bill or collapse.
But the struggle for power is worth it, he says. About 122 million of Nigeria’s 200 million people have access to the Internet, accounting for one-fifth of all Internet users in Africa. That’s a lot of potential customers for Web-based services.
“Nigeria is the land of opportunity,” he says. “Once you master the energy challenge, there’s a very large market, and you’ll be able to make money.”