Next Trucking Lays Off 20% of Workforce, Reversing Fast Growth

Rachel Uranga

Rachel Uranga is dot.LA's Managing Editor, News. She is a former Mexico-based market correspondent at Reuters and has worked for several Southern California news outlets, including the Los Angeles Business Journal and the Los Angeles Daily News. She has covered everything from IPOs to immigration. Uranga is a graduate of the Columbia School of Journalism and California State University Northridge. A Los Angeles native, she lives with her husband, son and their felines.

Next Trucking Lays Off 20% of Workforce, Reversing Fast Growth

Venture-backed NEXT Trucking has laid off nearly 20 percent of its workforce as trade tensions have put pressure on the Southern California ports where it is concentrated.

The company had been on a fast track for growth as it sought to bring a sleek tech-sensibility to the grimier port logistics industry. Layoffs of 65 of its 300 workers will take effect on March 17, according to a document filed with state's Employment Development Department.


NEXT spokesman Mike Bush said the company was "deprecating our least profitable business units in order to focus on growth areas" including an aggressive push in New York and New Jersey. But, he would not specify what areas of the company were being slimmed down.

One of several app-driven startups that recently emerged to ease inefficiencies in cargo transportation, NEXT has raised $134 million from backers that include Brookfield Ventures – an owner of seaport properties around the world, including a stake in TraPac terminal in Los Angeles — and Sequoia Capital.

Founded by husband and wife team Elton Chung, a former investment banker, and e-commerce entrepreneur Lidia Yan, the company was touting plans to expand last year when it opened a 25,000 square foot headquarters in El Segundo.

Billed as a "FreightTech" company, NEXT Trucking runs a proprietary fleet and uses drivers to operate in the Los Angeles and Long Beach ports where it matches truckers to shippers. It launched in 2015 and according to its website has ferried $50 billion worth of goods for companies like Steve Madden and electronics-maker Sharp.

Southern California ports have recently seen a fall in imports as trade tensions between China and the United States intensified last year. Although relations have smoothed a bit, many companies have moved their supply chains away from China to Southeast Asian countries, altering shipping routes from the West Coast to the East Coast. The trucking industry and ride-based apps like Uber have also been grappling with a California law that redefines the role of an independent contractor.

https://twitter.com/racheluranga
rachel@dot.la

Subscribe to our newsletter to catch every headline.

Cadence

Genies Wants To Help Creators Build ‘Avatar Ecosystems’

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Genies Wants To Help Creators Build ‘Avatar Ecosystems’

When avatar startup Genies raised $150 million in April, the company released an unusual message to the public: “Farewell.”

The Marina del Rey-based unicorn, which makes cartoon-like avatars for celebrities and aims to “build an avatar for every single person on Earth,” didn’t go under. Rather, Genies announced it would stay quiet for a while to focus on building avatar-creation products.

Genies representatives told dot.LA that the firm is now seeking more creators to try its creation tools for 3D avatars, digital fashion items and virtual experiences. On Thursday, the startup launched a three-week program called DIY Collective, which will mentor and financially support up-and-coming creatives.

Read moreShow less

Here's What To Expect At LA Tech Week

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Here's What To Expect At LA Tech Week

LA Tech Week—a weeklong showcase of the region’s growing startup ecosystem—is coming this August.

The seven-day series of events, from Aug. 15 through Aug. 21, is a chance for the Los Angeles startup community to network, share insights and pitch themselves to investors. It comes a year after hundreds of people gathered for a similar event that allowed the L.A. tech community—often in the shadow of Silicon Valley—to flex its muscles.

From fireside chats with prominent founders to a panel on aerospace, here are some highlights from the roughly 30 events happening during LA Tech Week, including one hosted by dot.LA.

Read moreShow less

Is AI Making the Creative Class Obsolete?

Steve Huff
Steve Huff is an Editor and Reporter at dot.LA. Steve was previously managing editor for The Metaverse Post and before that deputy digital editor for Maxim magazine. He has written for Inside Hook, Observer and New York Mag. Steve is the author of two official tie-ins books for AMC’s hit “Breaking Bad” prequel, “Better Call Saul.” He’s also a classically-trained tenor and has performed with opera companies and orchestras all over the Eastern U.S. He lives in the greater Boston metro area with his wife, educator Dr. Dana Huff.
​AI face surrounded by art
image courtesy of Andria Moore

As artificial intelligence becomes more advanced, AI image and writing generators are becoming more widespread, even taking on creative tasks some once thought uniquely human.

These tools have limitations. AI-created images sometimes appear half-finished (look no further than DALL-E’s early renderings of faces), and AI-generated writing can sound like garble written by, well, a robot.

The surge in AI use for creative work like copywriting and developing art has some in the creative fields concerned about losing their jobs, going the way of the traditional animator at Pixar. Reports like one published in 2021 by San Mateo-based job discovery platform Zippia don’t help with statements like, “AI could take the jobs of as many as one billion people globally and make 375 million jobs obsolete over the next decade” and “half of all companies currently utilize AI in some fashion.”

Using AI to create open-source art available to the masses wasn’t on the radar for many until the release of the text-to-image creator DALL-E Mini last summer. The release coincided with the Washington Post’s profile of Google engineer Blake Lemoine, who claimed Google’s Language Model for Dialogue Applications (LAMDA) was sentient.

AI innovations like GPT-3—a large language model which uses deep learning to produce original text—are touted as solutions to a host of problems with little discussion about drawbacks or limitations. One notable example is the widely-used writing assistant Grammarly, which uses a combination of artificial intelligence techniques, including deep learning and natural language processing.

Hour One’s Natalie Monbiot says creatives shouldn’t be concerned about AI.

“It's normal to feel anxious about it, and it will be a realistic concern for those whose actual work can be done more cheaply, quickly, and consistently via machines,” says Monbiot, who is head of strategy for the avatar video generation platform.

“These new technologies are new tools,” she says, like “the pen, the typewriter, computers, and so on.”

Monbiot says that as AI becomes more instrumental to creators’ work, “there will be a higher premium on creativity (which is distinctly human) and less on execution.”

Kris Ruby of Ruby Media Group, a PR agency, tells dot.LA that users go wrong with AI writing products by trusting them to produce finished work. That “is not how the tools are supposed to be used,” Ruby says.

According to Ruby, users of text-to-image generation tools like DALL-E Mini and Midjourney make the mistake of “calculating the cost of the software subscription…but not the number of hours it takes to get even one useable image.”

Austin-based Jasper.ai’s CEO Dave Rogenmoser says these applications “eliminate the mundane elements of the content creation process.” Jasper develops multiple AI-powered writing tools and recently added a text-to-image creator to its suite.

“It isn’t a replacement for creators or the creative process,” he says, “rather, it’s a trusty sidekick in the content process that helps bring ideas to life faster and in a more efficient way.”

San Francisco-based Writer.com is an AI writing assistant focused on corporate clients. Its CEO, May Habib, tells dot.LA that creators have more to gain from the tools than they have to lose.

“Like any tool, it is about depth: AI writing tools are most powerful in the hands of those who are already pretty skilled, but still pretty useful for everyone,” Habib says.

“We don’t think AI is going to take away real writing jobs,” she continues, “but it will speed up ideation and drafting.”

Is there a danger of overselling AI before it can meet companies’ expectations?

Habib’s answer? Absolutely. Consumers should not expect artificial intelligence to solve all their problems. Applications powered by AI “can’t feel like magic,” she says; they have to “feel like technology."

AI expert Mikaela Pisani is the Chief Data Scientist for Los Angeles-based Rootstrap, which develops apps for startups. Asked if it was realistic for creators to worry about losing jobs to artificial intelligence, Pisani says, “AI is becoming increasingly creative” and “can help creatives generate content ideas at scale.”

When it comes to fears that AI might replace creators, Pisani notes that “Creativity is defined as 'the ability to produce or use original and unusual ideas.’”

“To think outside of the box is implicitly hard to do for machines,” Pisani says, “since AI are trained on available information. Therefore, our creative brain won't be replaced by AI in the near future, since it is too challenging for machines to recreate innovation. By extension, AI does not create a final piece of art, but it can be used as a co-creator.”

Pisani’s perspective isn’t that different from execs behind AI-fueled startups. She says that because artificial intelligence can “multitask rapidly, it could also be a source of inspiration for artists.”

“Writers, musicians, designers, or artists,” Pisani continues, “shouldn't be afraid of being replaced but should make themselves aware of these AI tools that can help their creativity reach a new level of scale."

So far, the consensus seems to be that AI is just an instrument, not a replacement for human artistry.

It’s still early, though, and artificial intelligence use is evolving fast. Just last week, Vanity Fair reported that 91-year-old James Earl Jones is retiring from voicing Darth Vader for future Star Wars shows and movies. His replacement? Respeecher, AKA “voice cloning powered by artificial intelligence.” The Ukraine-based company says its product “leverages recent revolutionary advances in artificial intelligence” to create “voice swaps [that] are virtually indistinguishable from the original — and never sound robotic.”

One thing seems clear: AI is here to stay.

RELATEDEDITOR'S PICKS
LA TECH JOBS
interchangeLA
Trending