Santa Monica's Tapcart is Surging As Retail Stores Scramble to Mobile
Rachel Uranga covers the intersection of business, technology and culture. 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.
Every month 10 million shoppers scroll through Tapcart, a little-known software that translates the $95 billion ecommerce giant Shopify's platform to mobile.
The marketing software has seen shopping activity jump 50% over the past 90 days as the pandemic wallops traditional retailers. And chief executive Eric Netsch is aiming to process $1 billion in sales over the next year. In May alone, the company is expected to hit $71 million of online retail sales through its mobile app.
But the Santa Monica-based company's biggest get may have happened a few days before California Gov. Gavin Newsom's stay-at-home order came down. Founders Netsch and Sina Mobasser had been pitching venture capitalist for a Series A round when they scored with SignalFire, which committed to lead the $10 million round. The nation's economy was about to go into free-fall.
"We didn't know companies were going to have a hard time getting funded, we didn't know that the economy was going to collapse. We didn't know about the stay-at-home order at the time," he said. "The timing was impeccable and we're happy that we found the right partner."
Flush with funds, Tapcart is planning a marketing and expansion blitz in an effort to grow the business software company as it looks to grow its offerings. Since it was founded in 2017, Tapcart has raised a total of $15 million.
Like a lot of e-commerce products, Tapcart — whose clients include fast-fashion seller Fashion Nova, Chubbies and other brands — has benefited from the pivot to online shopping. The largest growth has been among smaller and medium size businesses that haven't had to deal with some of tough logistical issues facing larger companies. It's also seen a jump in food and beverage along with retailers selling sports apparel and supplements, as people were forced to remake their workout routines at home.
"The behavior will be permanent because people are realizing they can get everything on their mobile app on their phone," he said.
In April, consumer spending nosedived 16%, but online sellers — which make up a smaller share of the market — saw sales increase 8.4%.
The surge in store closings has toppled already ailing retail giants like Pier1 Imports and JCPenny, and walloped other retailers facing mounting debts.
"We have traditional retailers who have closed a lot of their retail stores and shifted all of their traffic onto their apps in their website," he said.
Among them is New Jersey-based DressBarn which recently launched a mobile app as it, like other retailers, go into survival mode.
Until now, Tapcart has relied solely on Shopify, a popular sales platform that has made it easier for small and mid-size businesses to create online stores, to distribute its product.
Tapcart, which sells monthly subscriptions ranging from $99 to $999, has only about 1,000 paying customers in a sea of over one million merchants using Canada-based Shopify's platform. But it plans to offer a decoupled version of its mobile applications to customers. Its pitch is that it helps with customer retention, an expensive proposition in the online world.
"We have a lot of room to grow," he said. "Part of our expansion plan is that we want to start working with Fortune 1000 brands like the JC Penny's and Nordstroms to start using our technology in their own custom built solution."
Chris Farmer, the managing director of SignalFire, said the company had "massive opportunity to also help retailers get back on their feet with mobile and offline commerce."
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Coronavirus Updates: Disney Pitches Florida Re-Open; Valence's Push for Interns; Snap, LAUSD and Celebs Partner on Reading
Here are the latest headlines regarding how the novel coronavirus is impacting the Los Angeles startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for the latest updates.
- With internships cancelled, Valence tries to fill the void for young black professionals
- Florida is poised to open Disney World and SeaWorld. Will California be far behind?
- Snap and LAUSD promotes reading during COVID, with an assist from celebs like Alicia Keys
With internships cancelled, Valence tries to fill the void for young black professionals<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzMyNTkwMi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYwNTczNTE4M30.YVDJESMmCRibfFoEY82y4HiQci38rzJH1RKsJGlw_aE/image.png?width=980" id="7f574" class="rm-shortcode" data-rm-shortcode-id="f541a00e8d17de6d806235c23444c2f4" data-rm-shortcode-name="rebelmouse-image" /><p>Across the country aspiring young students have had their summer internships cancelled because of the pandemic, crushing dreams and muddying professional paths. It's been especially hard for communities of color, where some are the first in the family to go to college or where internships provide an entrance into a professional world.</p><p>Valence Enterprises Inc., a Santa Monica-based company that's developed a sort of LinkedIn for black professionals, is trying to offset the pain calling on their network of leaders and professionals to provide career advice. Their network of 7,000 individuals can talk on everything from Hollywood to venture capital to marketing. Indeed, the legion of young professionals seeking it will need that hand as they enter a world forever changed by the pandemic.</p><p>Many are already facing devastating family loss - as the coronavirus kills African Americans at three times that of white families. And job loss is concentrated in low-wage sectors where Black and Latino workers are seeing high unemployment. </p><p>The very wealth gap that Valence seeks to lessen is only <a href="https://www.weforum.org/agenda/2020/05/pandemics-poor-rich-economics-coronavirus-covid19/" target="_blank">expected to widen after the pandemic</a>. </p><p>Dubbing their efforts the "Boost Challenge," Valence is asking their network of more than 7,000 professionals to provide 30 minute one-on-one coaching sessions. "This is a chance to be coached by some really inspiring people that you otherwise wouldn't have direct access to," said Emily Slade, co-founder of Valence.</p><p>So far, they have gotten a buy in from the former chief marketing officer of Beats By Dre, and founder of Opus, Omar Johnson, to offer branding advice; Olympic medalist Michael Johnson will give partnership and sponsorship advice; and Boris Kodjoe, who founded the Full Circle Festival and is an actor and model, will offer his thoughts on the entertainment industry. Other participants include the chief marketing officer of Snap, Kenny Michell; Maisha C. Leek, a partner at Human Ventures; Derek Ali, a Grammy Award-winning mixing engineer; and Caroline Wang, chief culture, diversity and inclusion officer at Target Corp.</p><p>"As a tech platform and professional network focused on connecting the Black community with mentorship, job opportunities and capital,<a href="http://www.valence.community/" target="_blank"> Valence</a> is in a unique position to provide some support," said Kobie Fuller, the co-founder and a general partner at Upfront Venture. Valence has previously partnered with historically black colleges and universities, where students are reeling from the impacts of the pandemic.</p><p>An online survey by HBCUvc found among students at historically black colleges 62% lost their job due to COVID-19. The sample survey of 137 students by the nonprofit aimed at increasing opportunity in venture capital and technology also showed that among those 75% held a job while at school. </p>
Florida is poised to open Disney World and SeaWorld. Will California be far behind?<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzI4ODI2OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMDkzNDcyNH0.-nX2hvzltOpH8ieuOf_ohBoNJM-JbXhshLlK4D1FW8M/img.jpg?width=980" id="d0ee6" class="rm-shortcode" data-rm-shortcode-id="79ab04e2418b271f2628e2786013b354" data-rm-shortcode-name="rebelmouse-image" /><p>Walt Disney World wants to reopen in weeks after the Orlando amusement park was shuttered as the pandemic spread, and the company's multi-tiered proposal might be a blueprint to how the Magic Kingdom will open the front gates of its Anaheim park. Other Florida parks are also unveiling proposals to do the same, which must be approved by Gov. Ron DeSantis. </p><p>Disney plans a tiered reopening, with Disney World and Animal Kingdom opening on July 11, then Epcot and Hollywood Studios on July 15.SeaWorld wants to open on June 11. And Universal Orlando presented its plan to reopen on June 5. That plan also has been approved by the Orlando task force, which sent its recommendation to the governor. "We are developing a series of 'know before you go' communication vehicles and our objective is to reinforce our health and safety messages to guests before they arrive on our property so they are aware and prepared for the new environment," Disney's senior vice president of operations, Jim McPhee, <a href="https://www.latimes.com/business/story/2020-05-27/walt-disney-world-park-reopening" target="_blank">told the task force.</a></p><p>Will the same re-opening plan soon be unveiled for California's version of the theme parks? <a href="https://www.latimes.com/california/story/2020-05-27/silicon-valley-health-officer-slams-faster-pace-of-california-coronavirus-reopening" target="_blank">The Los Angeles Times reported</a> that a key architect of the nation's first coronavirus shelter-in-place order is criticizing the state's <a href="https://www.latimes.com/california/story/2020-05-26/los-angeles-county-reopens-with-new-state-guidelines-while-city-allows-in-store-shopping" target="_blank">increasingly fast pace</a> of lifting stay-at-home restrictions. Dr. Sara Cody, health officer for Santa Clara County — home to Silicon Valley and Northern California's most populous county — said she was concerned by the decision to allow gatherings of up to 100 people for <a href="https://covid19.ca.gov/pdf/guidance-places-of-worship.pdf" target="_blank">religious</a>, political and cultural reasons.</p>
Snap and LAUSD promotes reading during COVID, with an assist from celebs like Alicia Keys<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjY1NzUwMC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTU5OTAxNDQ3N30.Ff-fzCnRnQLbhIXn1cyzX0YwGUwp8YwNWrif-9njEE4/img.jpg?width=980" id="34bce" class="rm-shortcode" data-rm-shortcode-id="8bec468dda80a988ea00bd5388f3aa67" data-rm-shortcode-name="rebelmouse-image" />c1.staticflickr.com<p>Snapchat and L.A. Unified School District are partnering to keep high school students reading books while the coronavirus pandemic keeps them from the classroom. On Wednesday, Snap launched a new original series titled <em>The A-List Book Club </em>on its Discover platform, which houses Snap-curated content for its young-skewing audience. The new series will showcase celebrities discussing a favorite book and what it means to them. </p><p>Participating celebrities, who will shoot the footage themselves, include Russell Westbrook, Alicia Keys, and Kendall Jenner. At the end of each episode, LAUSD students can swipe up to be directed to L.A. Unified's website, where they can enter their student credentials to receive a free digital copy of the book. Book donations are supported by L.A. Students Most In Need, a charity created to support students during this challenging time. </p><p>The series will also air on LAUSD's YouTube channel, as well as on Snapchat nationwide, but without the swipe up option. "Education creates opportunity, and we are excited to support public education and help create new ways to engage students in learning outside the structure of a classroom," said Evan Spiegel, Snap's co-founder and CEO. "We are inspired by working together with Los Angeles Unified to create resources for students to help them build the foundation for future success."</p>
Americans locked out of the workplace have been remaking their home offices by adding desks, plants and wall hangings. Some of it so that they look a little more slick on Zoom calls.
The new interest in a beautiful home office has been a boon to furniture services like Fernish, which sells itself as an affordable option to upscaling your home. The rental service recently closed on a $15 million Series A led by Kosla Ventures, alongside other top investors including Scott Cook (founder of Intuit), Eytan Elbaz (founder of Scopely), and Jeff Wilke (Amazon's CEO of Worldwide Consumer), and Spencer Rascoff (founder of Zillow and dot.LA).
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HBO Max, the new streaming service from AT&T's WarnerMedia, launches Wednesday. Advertised as the place "where HBO meets so much more", HBO Max will debut with over 10,000 hours of content from a range of brands including HBO, Warner Bros., Cartoon Network and Turner, with characters as diverse as Elmo and Tony Soprano. This marks a culminating milestone in AT&T's massive integration that began in 2016 when it agreed to acquire Time Warner for $85.4 billion.
HBO Max users will be able to browse by "hub"
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