Category Archives: Business

Uber, Lyft, and traffic congestion is a complicated tale

Ride sharing services like Uber and Lyft initially touted themselves as a remedy for traffic congestion.

Getting drivers out of their individual private cars would, they believed, lighten up traffic in urban areas.

But a story in the Wall Street Journal reports that the results are quite the opposite (“The Ride-Hail Utopia That Got Stuck in Traffic“).

According to the WSJ:

A study published last year by San Francisco County officials and University of Kentucky researchers in the journal Science Advances found that over 60% of the slowdown of traffic speeds in San Francisco between 2010 and 2016 was due to the introduction of the ride-hail companies.

In Chicago, the companies have been “creating exponential growth in congestion in the downtown,” said Dan Lurie, policy director in the mayor’s office. Last month, the city started charging a new fee on every ride-hailing trip to mitigate traffic.

The reversal of ride-hailing from would-be traffic hero to congestion villain is the sort of unintended consequence that has become a recurring feature of Silicon Valley disruption. Companies seeking rapid growth by reinventing the way we do things are delivering solutions that sometimes create their own problems.

See also: “Uber and Lyft may be making San Francisco’s traffic worse,” ScienceMag.org, May 8, 2019.

Don’t miss the complaint about corruption in the Grammy Awards

A couple of days ago, I received a message from a friend who now lives in Texas. She was urging me to check out the EEOC complaint filed by Deborah Dugan, the former CEO and president of the National Academy of Recording Arts and Sciences, which we know primarily for its control of the Grammy Awards.

I don’t know if you’ve been paying attention to the blow up of the Grammy BoD, but the EEOC complaint just got posted out to DocumentCloud and it’s a doozy.

A downloaded a copy and did a quick read. Yes, it is a doozy.

It you’re at all interested in the music industry, or in the inside dynamics of corporate America, you really need to check this out.

You can get a good sense of what’s in the complaint from the week’s news reports. Or you can dive right in to the complaint itself using the link at the stop of this post.

The Recording Academy is imploding the week before the Grammys. Here’s what we know.” Washington Post, Jan. 22, 2020.

Every Allegation in Former Grammy Chief Deborah Dugan’s Recording Academy Complaint.” Pitchfork.com, Jan. 22, 2020.

10 Most Shocking Allegations In Deborah Dugan’s Complaint Against the Recording Academy,” Billboard.com, Jan. 22, 2020.

How the Grammys and Deborah Dugan Went From Hello to War in 5 Months/Accusations of harassment, favoritism and bullying have overshadowed Sunday’s show and pitted the Recording Academy against its suspended chief executive.” New York Times, Jan. 23, 2020.

Deborah Dugan speaks out after filing lawsuit against Recording Academy with Grammy allegations,” Good Morning America, Jan. 23, 2020.

“Bad Blood” = Good Book

I just finished John Carreyrou’s “Bad Blood,” a 2018 book based on his reporting that shattered the illusions of investors about the one-time Silicon Valley startup, Theranos.

I found a hardcover copy in a church thrift shop in San Mateo on our last trip to California. I believe that I paid $1. What a bargain!

The book is really in two parts. In the first part, he tells of the company’s inception and growth, propelled by the personality of its founder, a young Stanford drop-out who sold her vision of leading a revolution in medical care with a miniature blood testing machine that would make blood tests as simple as taking a drop or two from a finger tip. The tale he tells was pieced together from interviews with more than 150 people, including dozens of former employees and their associates, as well as documents such as emails, records from regulators and court files.

The second part of the book picks up his first person account from the time that he received a tip with allegations of fraud behind the scenes of the secretive firm.

The book ends when the company’s founder was barred by regulators from holding any position for an extended period, investors went to court in efforts to recover hundreds of millions of dollars, and criminal charges were expected.

It’s a rather chilling tale showing how greed can undermine all the systems that are supposed to protect the public. And it’s a good example of how investigative reporting can provide a counterweight when other systems have failed.

Now I’m ready to watch the HBO documentary, ‘The Inventor: Out for Blood in Silicon Valley.”

Star-Advertiser owner accused of waging war against small town newspapers

How times change.

This morning, after our early walk, I went looking to see if there has been any recent news about David Black and his newspaper chain, Black Press, which owns the Honolulu Star-Advertiser.

I found very little in the way of recent news about Black’s newspaper business. Actually, only two stories published in 2019 turned up in my initial Google search.

An April 2019 column in the Port Townsend (Washington) Leader, called attention to the beginning of a newspaper war, as a Black-owned community paper was beefing up it’s local reporting and advertising sales in an area that has been dominated by the Leader. At one point, Black had suggested he was interested in buying the Leader, but had been rebuffed by the publisher at the time in favor of local ownership.

A newspaper war. What side are you on?” was written by Scott Wilson, who with his wife owned and published the Leader from 2002 until their retirement in 2016.

Wilson portrays David Black’s network of community newspapers in Washington State and British Columbia as the new corporate giant now attempting to dominate and drive locally owned newspapers out of business.

Of course, back in 2001, when Black bought the Honolulu Star-Bulletin, he was the little guy campaigning publicly against Gannett, the then-dominant national newspaper chain that owned the much larger Honolulu Advertiser. Black even bought up a shipment of a book, “The Chain Gang,” which told the story of another small Wisconsin newspaper at war with Gannett. Black gave out copies to large advertisers around Honolulu, emphasizing the benefits of supporting competition in the marketplace by advertising in the Star-Bulletin rather than allowing Gannett to succeed in establishing the Advertiser as a monopoly.

Wilson spins a similar tale, but now with Black’s own newspaper chain in the role of villan formerly played by Gannett.

Black Press and Sound have not shied away from newspaper wars with independent local papers in order to shrink their competitor or put it out of business. They have very deep pockets and are smart at the business. They’ve been through this a dozen times, maybe more.

Black’s model has been successful in Washington State, where the Sound subsidiary has purchased most Washington newspapers that have come up for sale in the past three decades.

The list of newspapers that were once independent but are now inside the Sound portfolio is very long, and includes just about every newspaper within a two-hour drive of Jefferson County. Among them: The PDN, the Sequim Gazette, the Forks Forum, all of the weeklies in Kitsap County from towns like Poulsbo, Silverdale, Kingston, Port Orchard and Bainbridge Island; all of the weeklies on Whidbey Island, where they bought what was the sole independent competing newspaper – the Coupeville Examiner – just to shut it down.

They bought all the weeklies in the San Juans, driving one independent paper out of business. They own the weekly on Vashon Island, most of the weeklies in Pierce and King counties; the daily in Everett, the daily in Aberdeen, and they have a daily in Hawaii and in Juneau. Do a Google search on Sound or Black Press and you can see the whole list.

You get the idea. Check out Wilson’s column to get his defense of local ownership and independent journalism.

The only other 2019 story my search turned up described the last print edition of the Black-owned Seattle Weekly as it transitioned to a stripped down online-only existence (“Seattle Weekly stops the presses, ending four decades in print and joining the web-only ranks“).

The story quoted David Brewster, who founded Seattle Weekly in 1976 and remained as publisher until 1997.

Sound Publishing and its Surrey, B.C.-based parent, Black Press Media, specialize in “keeping costs down and consolidating services,” said Brewster. Their strategy, Brewster said, is to buy up community newspapers “and then reduce the editorial staff to one or two.” The companies have “no experience with alternative weeklies,” Brewster added. Berger agrees. “Sound Publishing is oriented toward a kind of community paper that the weekly was never designed to be,” he said.

Such skepticism seemed justified by heavy layoffs in 2017, which reduced the editorial staff to two writers and an editor and was further confirmed by this week’s news. “The only remaining staff will include a web producer, part time social media position and a multimedia sales consultant,” O’Connor said in an email.

Still, few in the Seattle media world were putting the blame entirely on Sound Publishing. The city’s newspaper sector has been decimated by layoffs and closures as the traditional revenue models run aground in the new digital world.

And so it goes in our hard-hit world of newspaper journalism.