This Week in Apps: A Recap of the Mobile World

Welcome back to This Week in Apps, TechCrunch’s weekly series dedicated to the latest developments in mobile operating systems, applications, and the broader app economy.

The app industry continues to thrive, having experienced a record-breaking 218 billion downloads and $143 billion in global consumer spending in 2020.

Last year, users devoted an astounding 3.5 trillion minutes to apps on Android devices alone. Furthermore, app usage in the U.S. now surpasses the time spent watching live television. Currently, Americans average 3.7 hours of live TV viewing daily, contrasted with four hours spent on their mobile devices.

Apps are not merely a source of entertainment; they represent a significant business opportunity. Mobile-first companies boasted a combined valuation of $544 billion in 2019, a figure 6.5 times greater than their non-mobile-focused counterparts. In 2020, investors channeled $73 billion into mobile companies, marking a 27% year-over-year increase.

This week’s highlights include an early look at TikTok’s initial e-commerce tests, featuring a program for sellers with product links in videos and affiliate sales options. We’re also examining the latest iOS and Android beta releases, an FTC complaint against the math app Prodigy, and more.

Top Stories

TikTok Tests a New E-commerce Experience in Indonesia

Recent reports from the Financial Times indicated TikTok was preparing to launch a range of new e-commerce features in 2021, including product links for creators, affiliate sales support, and livestreamed shopping. Now, we have a first glimpse at the live tests TikTok is conducting in the realm of e-commerce.

The company recently launched a “Seller University” website targeted at its Indonesian audience. This resource details how brands can advertise their products through video content. TikTok explains that brands can advertise in two ways: by creating their own videos or by collaborating with affiliates.

“If you choose to sell through your own page, you can then showcase products via livestreaming or short videos, with product anchors integrated into your content. When viewers watch your content, they can be directed to the corresponding product detail page by clicking on these anchors,” the site explains.

The Seller University also provides information on signing up as a TikTok seller, prohibited products, and other rules and guidelines.

To become a TikTok Seller, businesses must provide contact information, including location, phone number, email, shop details, warehouse location, and other required documentation for approval. Once approved, they can set up a Seller profile to manage associated users. A “TikTok Shop” tab will then appear on their profile, visible to visitors.

When videos featuring products are viewed, “product anchors” embedded within the content redirect viewers to the product detail page for transactions. Additionally, brands can partner with TikTok influencers through a new “TikTok Affiliate” program to promote their products.

TikTok confirmed to TechCrunch that this program is a test of its e-commerce solutions in Indonesia, and one of several product tests in the e-commerce space.

Consumer Advocacy Groups File FTC Complaint Against Edtech App Prodigy

A coalition of 20 consumer advocacy groups, led by the Campaign for a Commercial-Free Childhood, has filed an FTC complaint against Prodigy, a popular edtech app for web and mobile. The app is designed like modern freemium games, using math “battles” to improve skills, grades, and test scores.

The complaint alleges several issues, including aggressive tactics to persuade children using the free version to request the paid $59 annual subscription from their parents, which unlocks a richer gaming experience.

The groups also object to the app’s in-app rewards and badges, some of which are exclusive to paid users, creating a divide between those who pay and those who cannot. Furthermore, the complaint alleges that Prodigy’s claims regarding educational improvements lack merit.

Prodigy responded by stating it takes the concerns seriously, but that over 95% of users play the game for free. The company maintains that the paid membership model allows for free access. “Without this model, we would be required to put all of our educational content behind a paywall,” a spokesperson said. “We never show third-party ads on our platform, nor do we sell or lease any user information.”

The FTC is increasing its enforcement regarding apps targeting children, focusing on data collection and COPPA violations. This complaint, however, centers on marketing practices within edtech.

Weekly News

Platforms: Apple

Apple releases iOS 14.5, beta 2. This update includes a redesigned Apple Music interface with lyric sharing and new swipe gestures; new Shortcuts actions for screenshots, screen orientation, and cellular data modes; expanded iPad privacy features; and over 200 new emoji.

The new emoji include a heart on fire, exhaling face, face in clouds, gender options for beards, and an updated syringe for COVID-19 vaccine discussions.

Apple welcomes the first cohort for its Entrepreneur Camp for Black Founders and Developers. The program focuses on technical skills and user experience design, with sessions, labs, one-on-ones with Apple experts, and mentorship from VC firm Harlem Capital.

Participants include B3am, Black, Bar Exam, Film3D, FormKey, Health Auto Export, Hologarden, Hubli, Justice Royale, Kickstroid, Nailstry, Peek, and TuneBend.

Platforms: Google

Google launches the first developer preview of Android 12. The update includes new privacy controls, password complexity levels, improved user experience tools, app compatibility improvements, media transcoding, notification enhancements, enrollment-specific IDs, streamlined credential management, an improved screenshot editor, better audio support, Project Mainline improvements, and more.

Google’s Play Store adds support for Nearby Sharing. This feature allows users to share apps and updates with nearby Android devices.

Google suspended the Trump 2020 app from the Play Store for non-functionality. The app experienced errors upon launch, violating Google’s policies. The app can be reinstated if fixed.

E-commerce

YouTube is beta testing a new e-commerce shopping experience. Creators can market products to fans and facilitate direct purchases within the app, aiming to compete with TikTok’s shopping ambitions. The feature will expand later in 2021.

Fintech

Robinhood’s CEO Vlad Tenev testified before Congress regarding the GameStop frenzy. Tenev denied aiding hedge funds and requested SEC rule modifications. AOC pointed out that Robinhood’s “free” trading is subsidized by payment for order flow.

Social

TikTok parent ByteDance is exploring a sale of its TikTok operations in India to Glance. Glance operates Roposo, a TikTok rival, and the deal is facilitated by shared investor SoftBank.

Instagram is fixing an iMessage bug. The issue, where Instagram links didn’t show previews in iMessage, was attributed to a bug and will be resolved soon.

TikTok has partnered with UFC for a multi-year deal. This includes livestreams of pre- and post-fight content and behind-the-scenes footage.

Douyin, the Chinese version of TikTok, now has 550 million users for its in-app Search feature.

Parler is back online for existing users and will reopen to new users next week. The network also has a new interim CEO, Mark Meckler.

Triller faces controversy over its MAU claims. A report alleges the company misrepresented its monthly active users, claiming 25 million instead of 50 million.

Photos

Dispo, a photo-sharing app backed by $4 million in seed funding, launched into private beta. The app quickly reached TestFlight’s 10,000-person limit. Dispo’s unique feature is that users must wait 24 hours to view the photos they capture.

https://twitter.com/DispoHQ/status/1362105875633037314

Messaging

WhatsApp will roll out an in-app banner to explain its new privacy policy. Users can review the policy information before the May 15 deadline.

Streaming & Entertainment

Clubhouse has surpassed 8 million global downloads.

Global mobile users streamed 935 billion hours of video in 2020.

Cameo is reportedly raising $100 million. Facebook is testing its Cameo clone, Super.

YouTube revealed its 2021 plans:

• Redesign of YouTube VR
• Expanded video chapters
• New features for YouTube TV
• Parental controls for YouTube Kids
• Expansion of Applause tipping
• Improvements to YouTube Music
• Testing of e-commerce features
• Launch of YouTube Shorts in the U.S.

Gaming

Microsoft xCloud is testing a web version.

Apple demanded sensitive data from Valve.

Epic Games expanded its legal fight with Apple to the EU.

Stadia layoffs shocked the team.

Health & Fitness

Apple will only accept health pass apps from recognized public health authorities.

Apple promoted iOS health apps to Apple Card holders.

U.S. health & fitness app installs increased by 22% in 2020.

Pharmacy app installs in the U.S. rose by 47% with the vaccine rollout.

Productivity

Microsoft launched a unified app for iPad.

Government & Policy

TikTok faces new regulatory complaints in Europe.

North Dakota’s Senate voted down the App Store bill.

Adtech

The Post-IDFA Alliance launched a “No IDFA? No Problem” resource.

Security

File sharing app SHAREit was found to have several security flaws.

Funding and M&A

✨ Robinhood rival Public.com raised $220 million, valuing the business at $1.2 billion.

✨ Robinhood rival Webull raised $150 million, valuing the business at over $1 billion.

✨ Math learning app Photomath raised $23 million in Series B funding.

✨ Live video shopping startup Talkshoplive raised $3 million.

✨ Event networking app Grip raised $13 million in Series A funding.

✨ Mobile gaming startup Artie raised $10 million.

✨ Low-code app development service OutSystems raised $150 million, valuing the business at $9.5 billion.

✨ Cross-border neobanking app Zolve raised $15 million.

✨ Dating app Jigsaw raised $3.7 million.

Downloads

Outfit

TechCrunch recently highlighted Outfit, a startup focused on DIY home renovation. The company utilizes mobile devices to assist homeowners with their improvement projects.

Users submit project details, including measurements and images, through the Outfit application. The app then provides a detailed, step-by-step guide for project completion.

This guidance encompasses space documentation, delivery of necessary materials and tools, a personalized to-do list, and ongoing support throughout the process.

Hush

Hush is a newly available Safari ad blocker designed for Mac, iPhone, and iPad. Its functionality extends beyond simple ad blocking.

The application actively works to prevent tracking by invasive scripts and eliminates the ubiquitous cookie consent pop-ups, a consequence of GDPR regulations.

Hush operates by directly blocking the underlying scripts and elements, rather than interacting with the consent requests themselves. It avoids consenting or denying cookie permissions.

A key differentiator is Hush’s commitment to user privacy; it does not collect any personal data, including browsing history, passwords, or crash reports. The application is offered free of charge, with an option to support the developer via GitHub.

Zillow’s Update

Zillow has released an updated version of its 3D Home app, integrating several technologies into a unified interface.

The new version combines 3D Home tours, listing photographs, and AI-generated floor plans within a single platform. This provides a comprehensive view of the property.

The app utilizes computer vision and machine learning algorithms to generate floor plans and home tours from panoramic photos captured with a 360-degree camera. AI is also employed to estimate room dimensions and overall square footage.

Both the generated home tour and floor plan can be automatically uploaded to listings and shared across websites, MLS platforms, or via email and social media.

During 2020, Zillow observed a 255% increase in the publication of 3D Home tours on for-sale listings, driven by the need for safer property viewing options during the pandemic.