Under Armour Sells MyFitnessPal

Under Armour is divesting from a significant acquisition, Uber Eats is addressing concerns regarding its delivery fee waivers for Black-owned businesses, and Facebook is continuing efforts to curtail the spread of QAnon-related material. This is your Daily Crunch for October 30, 2020.

Key development: Under Armour is selling MyFitnessPal

After five years of ownership, Under Armour is selling MyFitnessPal, the diet and exercise tracking application, to Francisco Partners for $345 million, having originally purchased it for $475 million. Simultaneously, the company is discontinuing the Endomondo platform, which was acquired alongside MyFitnessPal.

Under Armour states that these actions are being taken to concentrate its brand efforts on its core customer base – the “Focused Performer.” However, the reduced sale price may indicate additional factors, potentially reflecting challenges for the business as competitors like Peloton and Apple (with its forthcoming Fitness+ service) gain prominence within the general fitness market.

It is important to note that Under Armour will not entirely abandon digital products, as it intends to continue operating the MapMyFitness platform, encompassing MapMyRun and MapMyRide.

Major technology companies

Uber Eats is responding to allegations of discrimination related to its free delivery program for Black-owned restaurants — Uber reports receiving over 8,500 arbitration requests stemming from its removal of delivery fees for select Black-owned restaurants on the Uber Eats platform.

Facebook is restricting the reach of content using the ‘save our children’ hashtag due to its association with QAnon — This hashtag has increasingly served as a veiled means of disseminating the widely circulated online conspiracy theory.

Reliance Jio Platforms surpasses 400 million subscribers and is considering expansion beyond India — The telecom operator, backed by Facebook and Google, reports improved financial performance despite the ongoing pandemic.

Startups, funding, and venture capital

Daimler is investing in lidar technology company Luminar to accelerate the development of autonomous trucks for highway use — Luminar will also become a publicly listed company through a merger with special purpose acquisition company Gores Metropoulos.

Nestlé is acquiring healthy meal delivery startup Freshly for a potential sum of up to $1.5 billion — Founded in 2015, Freshly, based in New York City, provides customers with convenient, healthy meals delivered weekly for quick preparation via microwave or oven.

B8ta is reinforcing its commitment to physical retail experiences with a new acquisition — B8ta provides retail space for innovative digital products.

Insights and analysis from Extra Crunch

New GV partner Terri Burns centers her investment strategy on Generation Z — Burns is the firm’s youngest partner and the first Black woman to achieve this position.

Is the substantial 2020 tech market rally losing momentum? — What are the potential consequences of a convergence of COVID-19, social unrest, and inflated valuations?

(Please remember: Extra Crunch is our subscription service, dedicated to providing accessible information about startups. You can find subscription details here.)

Other news

Educators are departing from schools. Could startups be their next destination? — The loss of teachers from schools presents an opportunity for startups competing within the evolving teacher economy.

EU plans to subject the ‘blackbox’ algorithms of large technology companies to regulatory scrutiny — Major online platforms will be obligated to make their algorithms transparent for regulatory review under proposals slated for introduction by European legislators next month.

Steve Case, AOL’s founder and an early participant in the development of Section 230, believes it is time for revisions — “A more open discussion between innovators and policymakers will be essential during this next phase of the internet,” Case stated.

The Daily Crunch is TechCrunch’s compilation of its most significant and impactful stories. To receive this summary in your inbox daily around 3pm Pacific time, you can subscribe here.