As of 10:40 a.m. ET

Amazon launched multiple products in its hardware event yesterday, including a drone, smart speakers, and a gaming service. The company’s new cloud gaming service Luna is priced at $5.99 in its early access phase.

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• Amazon announced a new spherical Echo ($99), Echo Dot ($49.99), and an Echo Dot with a clock ($59.99). As of January 2020, Amazon had a market share of 53% in the smart speakers market, down from 61% in January 2019. Google’s market share increased from 23.9% to 31% in the same time period.
• The company launched Echo Show 10, a smart screen with a motorized base to automatically face the user as they move around a room. The company also added Netflix to the list of available streaming options in Echo 10. 
• Amazon launched a controller for its cloud gaming service Luna, with an introductory price of $49.99. Luna is set to compete with other cloud gaming platforms, including Google’s Stadia, Microsoft’s xCloud, Apple’s Arcade, and Nvidia’s GeForce Now. Though Apple doesn’t allow Stadia and xCloud in its current form, Luna is available in Apple’s platforms as it was released as a Progressive Web App, which has a home screen icon and can be launched through a web browser. Apple doesn't take a revenue cut of 30% from the web apps.
• Always Home Cam, an autonomous security drone, will cost $249.99 and be available in 2021. 
• The company also announced a new car camera and car alarm. An API will be made available next year to allow car manufacturers to connect their car camera to Ring’s platform.

Tech Trends: Learning from Dating Apps

Since 2014, there have been more singles than married adults in the U.S. A survey conducted in April 2020 found that 6% of American adults were currently on a dating app while 21% had previously used one. The online dating industry is expected to grow from $6.4b in 2017 to $9.2b in 2025

There are currently four significant players in this market. Match Group is the biggest: it owns Match.com, Plenty of Fish, Tinder, and Hinge. In 2019, it brought in over $2b in revenue. The other major companies in the market include Meet Group (owner of MeetMe), Magic Lab (owner of Bumble), and Spark (owner of Christian Mingle and Elite Singles). 

Just as the pornography industry precipitated numerous technological revolutions, including the move to VHS, the internet's adoption, and the advent of closed captioning, the dating industry is predicting a future trend in specialization.

Since the launch of Match.com, competitors have tried to use unique specializations to capture their target market. This includes wealth (The League, Elite Singles), Religion (Christian Mingle), Sexual Orientation (Grindr), and Profession (Farmers Only).

Looking past the current trend of specialization, we see three more directions this industry could turn:

1. Data-based matching has tremendous potential to limit the time spent looking for a match. Two primary sources exist for this data. First, data can either be collected from sources such as Facebook, Apple, or Google, who can match individuals based on several factors including age, location, interests, sleeping patterns, ambitions, personality, profession, or a combination of these factors. Second, the data can come from companies such as 23andMe using genetic information to make biological matches. 

2. Due to the pandemic, we have seen a rise in the offering of virtual or remote dating. As we progress past the pandemic, these resources could be adapted to create new "intermediary" services between matchmaking and dating. This could include video dates, online games, or virtual events that you could attend with your match. Such offerings would provide a safe and comfortable environment to learn more about your potential partner before needing to meet in person. 

3. The intersection of digital and reality is an emerging space. Services such as Match Dining offer you and your date an opportunity to get a discount at selected venues if you meet through their service. This is a tremendous opportunity for dating apps to branch out from just matchmaking to profiting from the costly dating process itself. 

The dating industry could continue to pave the path for technological advances. These trends are likely to be replicable in your niche. Netflix and other streaming services could move into offering a physical benefit, including discounted popcorn delivery to companies. Already, in numerous industries, increasing data collection and analysis to improve their services. If you see a gap in your industry, one of these strategies may be able to help you fill it.

Let us know what you think:

Costco reported revenue of $53.3b, up 12% from last year’s $47.4b. The company’s net income stood at $1.3b, up 30% YoY.

Costco’s revenue, last five quarters:

• Q3 2020: $53.3b
• Q2 2020: $37.2b
• Q1 2020: $39b
• Q4 2019: $37b
• Q3 2019: $47.4b

More:

• For its financial year that ended Aug. 30, the company reported revenue of $166b and net income of $4b, up 9% YoY.
• The company’s e-commerce sales increased by 91% (and was 8% of Costco's overall revenue, up from 5% last year). Walmart reported a 97% increase in its e-commerce sales for its recent quarter.
• Unlike Walmart, the company doesn’t offer curbside pickup. It offers same-day delivery under a partnership with Instacart. According to a recent survey by Incisiv, 80% of shoppers expect to do more in-store pickup and curbside pickup over the next six months, and 90% of shoppers prefer home delivery over a store visit.

QUICK HITS

• Palantir is expected to receive a valuation of $22b in its IPO.
• California Gov. Gavin Newsom announced that the state will ban the sale of vehicles that run on gasoline and diesel, effective in 2035.
• The EU said that it will appeal a ruling which overturned a $15b fine against Apple and Ireland over State Aid and taxes.
• Spotify CEO Daniel Ek is set to invest one-third of his personal wealth in European tech startups. He said: "I get really frustrated when I see European entrepreneurs giving up on their amazing visions selling early on to non-European companies."
• Epic Games acquired kid-safe tech developer SuperAwesome.
• Google announced a new company benefit for full-time employees starting in 2021, which will match student loans up to $2,500 annually.
• Brands see 18.5% of e-commerce revenue from SMS marketing. See 6 top SMS campaigns here.* 

*This is a sponsored link.

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