Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.
Today:
- Trump could order ByteDance to divest of TikTok today, Bloomberg reports
- HBCUvc and PledgeLA offer $5,000 grants to founders from HBCUs
HBCUvc and PledgeLA offer $5,000 grants to founders from HBCUs
HBCUvu, a non-profit increasing racial diversity in venture capital, has partnered with PledgeLA to provide $5,000 grants to startup founders from historically Black colleges and universities. The program, dubbed the The Summer Lab Fund, is now accepting applications through August 6.
Supported by Crosscut Ventures, the fund will award equity-free grants to technology and tech-enabled startups founded by HBCU students and alumni. Selected startups will also receive mentorship and support from participating sponsors as well as access to HBCUvc and PlegeLA networks.
The funding opportunity, launched last week, is managed and operated by the current cohort of PledgeLA VC interns who were matched at firms across Los Angeles in a 10-week program.
PledgeLA is a cohort of tech companies and VC firms created by the Annenberg Foundation and the mayor of Los Angeles. Last week, the organization released results from its annual survey on diversity in tech companies across the city.
Current intern Evan Hamilton told dot.LA the plan is to establish the Lab Fund as an annual project. Although it only has three spots now, he said, if demand is high enough they will look to raise more funds.
"What I really hope for, as a result of this, is to encourage that pipeline of investors to go to HBCUs to find interesting entrepreneurial talents because as we've seen many times, most folks are in hoodies coming from Stanford," Hamilton said.
"Five thousand dollars is a nominal amount of money, but what it does is give someone that ability to say, 'I am an entrepreneur, I have been funded,'" Hamilton said. "It really doesn't take a lot to validate a lot of the thoughts, feelings and opinions that people have. If we're doing this correctly, we're going to help these companies grow, even the ones that aren't able to receive funding."
He said it hopes to dispel preconceived notions and encourage investors to look toward HBCUs for talent.
After applications close on August 6, interns will form an investment committee to present and review the interested companies, which come from industries including entertainment tech, retail, education services and sports. Winners of the fund will be announced August 14.
PledgeLA intern Liza Katsman hopes the thinking behind this initiative will one day extend beyond the HBCU ecosystem. She pointed out that entrepreneurs of different backgrounds - that had largely been excluded from tech companies - bring new perspectives and ideas that can turn into successful products or services.
"Diversity and inclusion is not just the right thing to do," Katsman said. "It's the smart thing to do."
dot.LA is a member of PledgeLA.
Trump and Microsoft Are Looking at TikTok
Amazon Tells Employees to Delete TikTok, Then Claims Directive Was Sent in Error
Microsoft is in talks to buy TikTok as President Donald Trump plans to ban it, various media reported Friday.
TikTok has come under increasing pressure from the administration that Chinese Internet company ByteDance is sharing data with Beijing and has threatened to ban it.
Bloomberg reported the Trump administration had planned to order ByteDance to divest of the Culver City-based company as early as Friday.
Microsoft could alter the question of ownership. It's unclear how advanced the talks are.
The White House could immediately be reached for comment.
But in an emailed statement a spokeswoman for TikTok said, "While we do not comment on rumors or speculation, we are confident in the long-term success of TikTok."
Trump's move would not come as a surprise. He told reporters on Friday: "We're looking at TikTok, we may be banning TikTok. We may be doing some other things. There's a couple of options."
Earlier this month, Trump suggested he would ban the app as punishment over China's handling of the coronavirus. Those comments came after Secretary of State Mike Pompeo told Fox News that the United States is considering whether to restrict TikTok and other social media apps amid concerns that information was being shared with China's communist government.
"We are taking this very seriously and we are certainly looking at it," Pompeo said.
In March, another Chinese company, Beijing Kunlun Tech sold the West Hollywood-based gay dating app Grindr for more than $600 million after the Committee on Foreign Investment in the United States forced it to divest.
Two months later, Beijing-based parent company ByteDance appointed Kevin Mayer, once widely considered Bob Iger's heir apparent at The Walt Disney company, to head TikTok in a move that would help distance itself from its Beijing parent company.
TikTok, has around 30 million active users and has increasingly become a favorite of advertisers to sell their products among the youth-oriented social media app.
- Could the U.S. Ban Chinese-Owned TikTok? - dot.LA ›
- TikTok's $2 Billion Creator Fund Goes After Instagram - dot.LA ›
- TikTok CEO Promises More Transparency, Jabs Facebook for ... ›
- TikTok Says it Will Pay Creators— and Universal Music Group - dot.LA ›
- TikTok addresses 'tough but fair questions' about opportunities for ... ›
- Snap Releases Dismal Diversity Report - dot.LA ›
- Kevin Mayer's Exit and What's Next in the TikTok Saga - dot.LA ›
- Trump Gives TikTok and Oracle Deal His ‘Blessing' - dot.LA ›
- It’s the Start of a New Day in LA for Microsoft - dot.LA ›
Subscribe to our newsletter to catch every headline.
A Lime spokesperson said that with its updated rate, low-income riders will still get an average discount of almost 90% off its service. He added that the startup's rates in Los Angeles are on average 50% less expensive than in most cities
“We would also like to note that L.A. riders have already saved an estimated $1 million via our Lime Access program, and we expect that figure to keep growing steadily with the new pricing in place,” said the spokesperson, who added that 2,800 low-income Angelenos have taken around 250,000 trips since the program rolled out.
Spin once provided low-income Angelenos with unlimited, free 30-minute rides. Now the company is capping the free rides to five per day. Spin did not immediately return a request for comment.
Similarly, Lyft riders were once able to get a monthly pass for $5 and pay $0.05 per minute per ride. Instead, they’ll now need to pay $0.50 to unlock the e-scooter and an additional $0.15 per minute.
The costs could add up for a demographic that is more likely than the average rider, according to data from rival micromobility startup Wheels, to use e-scooters to get to and from work.
“Lyft is now offering our Community Pass without a monthly payment to make it even easier for more riders to save,” James Boshers, Lyft associate general manager for Southern California, said in an email. Several hundred riders use the program in L.A., according to a spokesperson.
The changes were rolled out with little fanfare, but that might be a moot point. Few of the local transportation advocates dot.LA reached out to were even aware the equity programs existed.
“I mean, I'm not surprised. I think people love giving discounts as a way of showing equity, but there's got to be more,” said Oscar Zarate, assistant director of organizing for SAJE.
A spokesperson for Lime said they have tried unsuccessfully to reach representatives at the organization.
The city of Los Angeles doesn’t promote micromobility equity programs to potential riders; that responsibility falls wholly on companies.
“Revenue generated through the micro-mobility program is dedicated solely to enforcing the conditions of the permit,” LADOT spokesperson Colin Sweeney said by email, “which includes ensuring companies partner with community-based organizations and market their services to low-income residents among other critical safety and consumer protection functions.”
But earlier this year, Sweeney acknowledged that getting micromobility companies to even put their vehicles in low-income communities has been difficult. At first, the city offered incentives to operators, but that proved ineffective.
“As a result, our permanent micromobility program which was established last year REQUIRES operators to deploy a certain percentage of vehicles to specific neighborhoods as a condition of their permit,” he said
A Lime e-scooter parked in West Adams.Photo by Maylin Tu
Little Outreach, But More Scooters
Despite those requirements, some community advocates say that companies are not doing enough to reach out to communities to remove barriers to access.
Yolanda Davis-Overstreet serves as vice president of the West Adams Neighborhood Council and chairs its public safety committee. To her knowledge, no micromobility company operating in West Adams has reached out to the group.
She does, however, plan to reach out to them.
West Adams, a predominantly Black and Latino neighborhood, has experienced high rates of traffic violence. One stretch of Adams Blvd between Fairfax Ave and Crenshaw Blvd saw 59 severe and fatal collisions between 2009 and 2019, according to the L.A. Department of Transportation. Last year, the department completed a number of safety and infrastructure improvements along Adams, adding two miles of new bike lanes that make it safer for e-scooters, bikes and pedestrians.
Davis-Overstreet said she’s starting to see more shared e-scooters in her neighborhood.
“It's a privilege that these scooter companies seem to have, like ‘I don't care about your space. I'm here now’,” she said. ”No, if you're going to be here, you need to be here in a respectful way.”
Yolanda Davis-Overstreet chairs the West Adams Neighborhood Council's public safety committee.
Image courtesy of Yolanda Davis-Overstreet
It’s not that she’s opposed to e-scooters, Davis-Overstreet said, but as e-scooter companies ramp up in the community, so do concerns about safety and accessibility.
She said she wants companies to figure out how to respectfully integrate into a community that is already pursuing alternative forms of transportation.
“That's another reason scooters should be connected with [our] community … How are we going to get people in the United States — in particular in L.A. — in the conversation of climate change, if we don't give them access to other tools to use other than cars?”
Alternative forms of transportation like e-scooters have the potential to make a big impact on underserved residents, especially as gas prices surge.
Eli Akira Kaufman, executive director of the Los Angeles County Bike Coalition, a Lime partner, said that Lime has been a valuable collaborator in L.A. on initiatives like First Ride Academy and Lime Hero. But he would like to see companies do more for underserved communities, like advocating for better biking infrastructure and sponsoring workforce development programs.
“Lime Access and these different accessibility programs are great. We totally applaud their intent. But what more can be done to serve our most vulnerable commuters?”
Others cited the requirement that low-income customers fill out an online form and provide proof of income to access discounted rides.
“I don't know if a señora is going to be able to do that,” said SAJE’s Zarate. “And I think people really underestimate how difficult it is to fill out these applications, provide all this documentation— and there's a stigma, ‘Oh, you're applying for these low-income things’ that also discourages people from applying.”
Zarate added that Los Angeles transportation advocates want to start a dialogue—not a fight—with e-scooter companies like Lime, Bird and Lyft.
“Working class communities have always been multidimensional in terms of their transit and how they get around. People bike all around, you feel me?,” he said. “So, I think there's a strong tradition in the community. It's just about finding ways that work for everyone.”
‘Do Your Homework’
Currently, there are six dockless e-scooter and e-bike operators in Los Angeles: Bird, Lime, Spin, Superpedestrian (LINK), Wheels and Lyft. Each runs a separate low-income program with rates varying widely. The same 30-minute ride might cost $0 (Spin, LINK) to $7.85 (Bird) plus tax, depending on the company.
The L.A. Department of Transportation requires micromobility operators to:
- Deploy 20% of their total fleet in equity zones if they operate in certain more lucrative parts of the city like Venice, Hollywood and Downtown L.A.
- Offer a cash option for unbanked customers without a credit or debit card.
- Offer a non-smartphone option to unlock vehicles.
- Offer discounted rates for customers with an income level at or below 200% of the federal poverty guidelines.
- Attend meetings with community stakeholders such as neighborhood councils and disability rights organizations.
- Partner with a community-based organization.
Here’s a run down of costs and information for each low-income program operating in the city of Los Angeles.
Wheels: Wheels for All
$1.10 flat rate for 30 minutes
Lime: Lime Access
$1.25 flat rate for 30 minutes
Bird: Community pricing
50% off plus tax
Superpedestrian/ LINK: LINK-Up
Unlimited free 30 minute rides
Spin: Spin Access
Five free 30 minute rides per day
Lyft: Lyft Community Pass
$0.50 to unlock and $0.15 per minute
Are you enrolled in Lime Access, Lyft Community Pass or Spin Access and have the recent changes affected you? Let us know!
This article has been updated to include information from Lime about their efforts to engage with L.A. community groups.
- Escooter Startup Superpedestrian Takes to LA Streets - dot.LA ›
- Can Bird Fix the Hazards of E-Scootering? - dot.LA ›
- Can WeHo-Based Wheels Get More Underserved Angelenos to ... ›
