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App stores saw record 218 billion downloads in 2020, consumer spend of $143 billion

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Mobile adoption continued to grow in 2020, in part due to the market forces of the COVID-19 pandemic. According to App Annie’s annual “State of Mobile” industry report, mobile app downloads grew by 7% year-over-year to a record 218 billion in 2020. Meanwhile, consumer spending grew by 20% to also hit a new milestone of $143 billion, led by markets that included China, the United States, Japan, South Korea and the United Kingdom.

Consumers also spent 3.5 trillion minutes using apps on Android devices alone, the report found.

In another shift, app usage in the U.S. surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours on their mobile device.

The increase in time spent is a trend that’s not unique to the U.S., but can be seen across several other countries, including both developing mobile markets like Indonesia, Brazil and India, as well as places like China, Japan, South Korea, the U.K., Germany, France and others.

The trend isn’t isolated to any one demographic, either, but is seen across age groups. In the U.S., for example, Gen Z, millennials and Gen X/Baby Boomers spent 16%, 18% and 30% more time in their most-used apps year-over-year, respectively. However, what those favorite apps looked like was very different.

For Gen Z in the U.S., top apps on Android phones included Snapchat, Twitch, TikTok, Roblox and Spotify.

Millennials favored Discord, LinkedIn, PayPal, Pandora and Amazon Music.

And Gen X/Baby Boomers used Ring, Nextdoor, The Weather Channel, Kindle and ColorNote Notepad Notes.

The pandemic didn’t necessarily change how consumers were using apps in 2020, but rather accelerated mobile adoption by two to three years’ time, the report found.

Investors were also eager to fuel mobile businesses as a result, pouring $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year. According to Crunchbase data, 26% of total global funding dollars in 2020 went to businesses that included a mobile solution.

From 2016 to 2020, global funding to mobile technology companies more than doubled compared with the previous five years, and was led by financial services, transportation, commerce and shopping.

Mobile gaming adoption also continued to grow in 2020. Casual games dominated the market in terms of downloads (78%), but Core games accounted for 66% of games’ consumer spend and 55% of the time spent.

With many stuck inside due to COVID-19 lockdowns and quarantines, mobile games that offered social interaction boomed. Among Us, for example, became a breakout game in several markets in 2020, including the U.S.

Other app categories saw sizable increases over the past year, as well.

Time spent in Finance apps in 2020 was up 45% worldwide, outside of China, and participation in the stock market grew 55% on mobile, thanks to apps like Robinhood in the U.S. and others worldwide, that democratized investing and trading.

TikTok had a big year, too.

The app saw incredible 325% year-over-year growth, despite a ban in India, and ranked in the top five apps by time spent. The average monthly time spent per user also grew faster than nearly every other app analyzed, including 65% in the U.S. and 80% in the U.K., surpassing Facebook. TikTok is now on track to hit 1.2 billion active users in 2021, App Annie forecasts.

Other video services boomed in 2020, thanks to a combination of new market entrants and a lot of time spent at home. Consumers spent 40% more hours streaming on mobile devices, with time spent in streaming apps peaking in the second quarter in the west as the pandemic forced people inside.

YouTube benefitted from this trend, as it became the No. 1 streaming app by time spent among all markets analyzed except China. The time spent in YouTube is up to 6x that of the next closet app at 38 hours per month.

Of course, another big story for 2020 was the rise of e-commerce amid the pandemic. This made the past year the biggest ever for mobile shopping, with an over 30% increase in time spent in Shopping apps, as measured on Android phones outside of China.

Mobile commerce, however, looked less traditional in 2020.

Social shopping was a big trend, with global downloads of Pinterest and Instagram growing 50% and 20% year-over-year, respectively.

Livestreaming shopping grew, too, led by China. Downloads of live shopping TaoBao Live in China, Grip in South Korea and NTWRK in the U.S. grew 100%, 245% and 85%, respectively. NTWRK doubled in size last year, and now others are entering the space as well — including TikTok, to some extent.

The pandemic also prompted increased usage of mobile ordering apps. In the U.S., Argentina, the U.K., Indonesia and Russia, the app grew by 60%, 65%, 70%, 80% and 105%, respectively, in Q4.

Business apps, like Zoom and Google Meet among others, grew 275% in Q4, for example, as remote work and sometimes school, continued.

The analysis additionally included lists of the top apps by downloads, spending and monthly active users (MAUs).

Although TikTok had been topping year-end charts, Facebook continued to beat it in terms of MAUs. Facebook-owned apps controlled the top charts by MAUs, with Facebook at No. 1 followed by WhatsApp, Messenger and Instagram.

TikTok, however, had more downloads than Facebook and ranked No. 2 by consumer spending, behind Tinder.

The full report is available only as an online interactive experience this year, not a download. The report largely uses data from both the iOS App Store and Google Play, except where otherwise noted.

Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

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Virgin Orbit will launch first Dutch defense satellite in mission that will demo rapid response capabilities

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Virgin Orbit isn’t slowing down after joining the exclusive club of small launch companies that have made it to orbit – the company just announced that it’s flying a payload on behalf of customer the Royal Netherlands Air Force (RNAF). This is the first ever satellite being put up by the Dutch Ministry of Defense, and it’s a small satellite that will act as a test platform for a number of different communications experiments.

The satellite is called ‘BRIK-II’ – not because it’s the second of its kind, but rather because it’s named after Brik, the first airplane ever owned and operated by the RNAF. This mission is one of Virgin Orbit’s first commercial operations after its successful test demonstration, and will fly sometime later this year. It’s also being planned as a rideshare mission, with other payloads expected to join – likely from the U.S. Department of Defense, which is working with Virgin Orbit’s dedicated U.S. defense industry subsidiary VOX Space on planning what they’ll be adding to the mission load out.

This upcoming mission is actually a key demonstration of a number of Virgin Orbit’s unique advantages in the launch market. For one, it’ll show how the U.S. DOD and its ally defense agencies can work together in the space domain when launching small communications satellites. Virgin Orbit is also going to use the mission as an opportunity to show off its “late-load integration” capabilities – effectively, how it can add a payload to its LauncherOne rocket just prior to launch.

For this particular flight, there’s no real reason to do a late-load integration, since there’s plenty of lead time, but part of Virgin’s appeal is being able to nimbly add satellites to its rocket just before the carrier jet that flies it to its take-off altitude leaves the runway. Demonstrating that will go a long way to help illustrate how it differentiates its services from others in the launch market including Rocket Lab and SpaceX.

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As it hits $100 million run rate, The Pill Club adds former Uber exec Liz Meyerdirk as CEO

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Liz Meyerdirk made a name for herself at Uber as the Senior Director & Global Head of Business Development for the company’s Uber Eats business and she’s now turning her attention to women’s health as the new chief executive of The Pill Club.

The move comes at a perilous time for the remote delivery of women’s healthcare as the Supreme Court has taken steps to limit the provision of sexual healthcare to women in recent months.

“Women’s health care has never been more tested than right now,” Meyerdirk noted in a blog post announcing her new role. “COVID-19 has upended access to care; dozens of states have—and continue—to try and limit women’s choice; and last year, the Supreme Court voted to uphold the rollback of the ACA contraceptive mandate decision, a stunning move that could end up impacting as many as 126,000 women who previously received covered contraception through employer-based health insurance.”

A seasoned corporate executive, Meyerdirk is hoping to navigate The Pill Club through these treacherous times. “These events have shown that reliable, safe, and affordable access to women’s health and birth control is
just one more vulnerability in our health care system,” Meyerdirk wrote.

Liz Meyerdirk, chief executive of The Pill Club: Image Credit: The Pill Club

As it faces an uncertain legal environment on some fronts, the company couldn’t be in a better position financially.

The Pill Club, which is profitable and now has a $100 million run rate, is now ready for its closeup with Meyerdirk at the helm.

The company has managed to make its mark in the crowded world of online prescriptions and refill fulfillment by focusing specifically on women’s health and ensuring that those services are available to as many potential patients as possible.

“We’re now serving hundreds of thousands of women nationwide with 20% on Medicaid,” says Meyerdirk. “We prescribe in 43 states and the District of Columbia.”

For Meyerdirk, the background she had in logistics and fulfillment from her time at Uber Eats made the transition to the pill prescription and delivery service natural.

“There is a heavy logistics element to it,” said Meyerdirk.

As Meyerdirk takes the reins of the company, she said there’s a few areas that The Pill Club will expand into beyond its focus on birth control and contraception. “There are areas that our customers are asking for,” Meyerdirk said.

These areas include, initially, dermatology. Last year the company launched a delivery service for contraceptives and women’s hygiene products like pads and tampons.

As it continues to expand its product suite, it’s also growing its executive staff. The company not only added Meyerdirk, but also David Hsu as chief financial officer and Jeremy Downs as senior vice president of growth. Hsu joins the company from Honey, where led the $4 billion acquisition negotiations with PayPal, and Downs comes from Uber Eats, where he spent five years leading growth.

“We need sustained, long-term access to women’s health care, not just a bridge while the pandemic persists; and we need coverage for essential health services like birth control and prenatal care, regardless of whether or not you’re insured,” Meyerdirk wrote. “Reproductive care has and continues to be an essential part of our business, but there are countless opportunities to serve women in all of their life stages from puberty to menopause.”

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BlackCart raises $8.8M Series A for its try-before-you-buy platform for online merchants

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A startup called BlackCart is tackling one of the key challenges with online shopping: an inability to try on or test out the merchandise before making a purchase. That company, which has now closed on $8.8 million in Series A funding, has built a try-before-you-buy platform that integrates with e-commerce storefronts, allowing customers to ship items to their home for free and only pay if they choose to keep the item after a “try on” period has lapsed.

The new round of financing was led by Origin Ventures and Hyde Park Ventures Partners, and saw participation from Struck Capital, Citi Ventures, 500 Startups, and several other angel investors including Christian Sullivan of Republic Labs, Dean Bakes of M3 Ventures, Greg Rudin of Menlo Ventures, Jordan Nathan of Caraway Cookware, and First National Bank CFO Nick Pirollo, among others.

Image Credits: BlackCart

BlackCart founder Donny Ouyang had previously founded online tutoring marketplace Rayku before joining a seed stage VC fund, Caravan Ventures. But he was inspired to return to entrepreneurship, he says, after experiencing a personal problem with trying to order shoes online.

Realizing the opportunity for a “try before you buy” type of service, Ouyang first built BlackCart in 2017 as a business-to-consumer (B2C) platform that worked by way of a Chrome extension with some 50 different online merchants, largely in apparel.

This MVP of sorts proved there was consumer demand for something like this in online shopping shopping.

Ouyang credits the earlier version of BlackCart with helping the team to understand what sort of products work best for this service.

“I think, in general, for try-before-you-buy, anything that’s moderate to higher price points, lower frequency of purchase, where the customer makes a considered purchase decision — those perform really well,” he says.

Two years later, Ouyang took BlackCart to 500 Startups in San Francisco, where he then pivoted the business to a B2B offering it is today.

Image Credits: BlackCart

The startup now provides a try-before-you-buy platform that integrates with online storefronts, including those from Shopify, Magento, WooCommerce, Big Commerce, SalesForce Commerce Cloud, WordPress, and even custom storefronts. The system is designed to be turnkey for online retailers and takes around 48 hours to set up on Shopify around a week on Magento, for example.

BlackCart has also developed its own proprietary technology around fraud detection, payments, returns, and the overall user experience, which includes a button for retailers’ websites.

Because the online shoppers aren’t paying upfront for the merchandise they’re being shipped, BlackCart has to rely on an expanded array of behavioral signals and data in order to make a determination about whether the customer represents a fraud risk. As one example, if the customer had read a lot of helpdesk articles about fraud before placing their order, that could be flagged as a negative signal.

BlackCart also verifies the user’s phone number at checkout and matches it to telco and government data sets to see if their historical addresses match their shipping and billing addresses.

Image Credits: BlackCart

After the customer receives the item, they are able to keep it for a period of time (as designated by the retailer) before being charged. BlackCart covers any fraud as part of its value proposition to retailers.

BlackCart makes money by way of a rev share model, where it charges retailers a percentage of the sales where the customers have kept the products. This amount can vary based on a number of factors, like the fraud multiplier, average order value, the type of product and others. At the low end, it’s around 4% and around 10% on the high-end, Ouyang says.

The company has also expanded beyond home try-on to include try-before-you-buy for electronics, jewelry, home goods, and more. It can even ship out makeup samples for home try-on, as another option.

Once integrated on a website, BlackCart claims its merchants typically see conversion increases of 24%, average order values climb by 51%, and bottom-line sales growth of 27%.

To date, the platform been adopted by over 50 medium-to-large retailers as well as e-commerce startups, like luxury sneaker brand Koio, clothing startup Dia&Co, online mattress startup Helix Sleep, cookware startup Caraway, among others. It’s also under NDA now with a top 50 retailer it can’t yet name publicly, and has contracts signed with 13 others who are waiting to be onboarded.

Soon, BlackCart aims to offer a self-serve onboarding process, Ouyang notes.

“This would be later, end of Q2 or early Q3,” he says. “But I think for us, it will still be probably 80% self-serve, and then larger enterprises will want to be handheld.”

With the additional funding, BlackCart aims to shift to paying the merchant immediately for the items at checkout, then reconciling afterwards in order to be more efficient. This has been one of merchants’ biggest feature requests, as well.

Image Credits: BlackCart; team photo

The funding will also allow BlackCart to expand its remotely distributed 10-person team to around 50 by year-end, including engineers, product specialists, customer support staff, and sales.

More broadly, it aims to quickly capitalize on the growth in the e-commerce market, driven by the COVID-19 pandemic.

“[We want to] take advantage of the favorable macroeconomic situation to scale as quickly as possible,” Ouyang explains. “We’re hoping to get to around $250 million in transactions through our platform by the end of 2021. And this would be driven by both engineering and sales hires, and just pushing it up,” he says.

Longer-term, Ouyang envisions adding more consumer-facing features to BlackCart’s platform, like on-demand returns where a courier comes to the house to pick up your return, for example.

“Our firm is excited to partner with BlackCart as it makes try-before-you-buy the standard in online shopping,” said Prashant Shukla of Origin Ventures, who now sits on BlackCart’s board, as result of the new financing. “Its underwriting technology provides merchants with peace of mind, and its best-in-class consumer experience delivers significant sales and conversion lifts. Digital Native generations expect to be able to shop online exactly as they would in a retail store, and BlackCart is the only company providing this experience,” he adds.

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