Tech Snapshot | Lyft, Uber, Airbnb, Facebook | Aug 17 – 20

,,Lyft and Uber are given more time to classify drivers as employees, or else they leave California

Last week was a whirlwind for both ride-hailing companies. A California statute (,,AB-5) issued in 2019 became a landmark case that sought to grant more labor protections for independent contractors, including qualifying them as employees and guaranteeing them minimum wage, sick leave, and worker’s compensation. AB-5 makes it harder for companies to save money by keeping some workers as independent contractors, which is an integral aspect of the business model for ride-hailing apps like Lyft and Uber. After failing to classify their drivers as employees, both companies were prepared to cease operations in California starting at midnight on August 20. Then on Wednesday, August 19, a few hours before the stroke of midnight, an appeals court allowed both companies to continue operating (with drivers as independent contractors).

Both companies are fighting to make themselves exempt from AB-5, and registered voters in California will vote in November (,,Prop 22) to determine whether Lyft and Uber will be exempt from AB-5 or not. If exempt, drivers will continue to be classified as independent contractors and not receive company benefits (note that neither company is making a profit even with the current business model). If not exempt, Lyft and Uber will most likely hire fewer drivers and increase fares. Or they may cease operations in California, the largest economy in the U.S.

,,Airbnb files for IPO

The San Francisco-based home rental company surprisingly announced last Wednesday that

they will file for IPO with the U.S. Securities and Exchange Commission.

COVID-19 severely impacted the travel industry, with the company laying off 25% of its workforce and its valuation dropping from $31B to $18B from March to April. Airbnb has lost $400M and raised $2B in equity and debt to weather out the COVID storm. Bookings did improve in June and July; being under quarantine for a few months has caused people to get the travel itch, and Airbnb has shifted its focus to marketing local and intimate travel destinations for users.

Once Airbnb goes IPO, they will be famous for being a company that went public during uncertain economic times.

,,Facebook will merge Instagram, FB Messenger, and Whatsapp

Facebook will be unifying the messaging platform to allow cross-messaging among FB Messenger, Instagram, and Whatsapp. Facebook knows that not all users use all 3 platforms on a regular basis, Facebook is working to rebuild its infrastructure to provide seamless communication between all 3 platforms. This new model is currently in beta test with select users.

Facebook acquired Instagram for $1B in 2012, and Whatsapp in 2014 for $19B.

,, raises $830M

Alibaba rival and fellow online e-commerce titan,, branched its own healthcare unit called JD Health, which is a platform for 30-minute pharmacy delivery. With a valuation for $7B, JD Health announced it raised $830M from Hillhouse Capital and will use such funds for Series B financing.

,,Craft raises $10M to apply intelligence to supply chain

Supply chain optimization is essential for consumers worldwide to receive their goods as swiftly as possible. Enterprise intelligence company Craft has closed Series A with $10M led by High Alpha Capital. Craft plans to build a “supply chain intelligence platform.” Craft plans to expand its offices in San Francisco, London, and Minsk and grow remote teams of engineering, sales, marketing, and operations.

Craft’s solution to the lack of visibility into complex global supply chains is a proprietary data platform, API, and access portal that integrates into existing enterprise workflows. Craft’s platform also comes pre-deployed with data from thousands of financial sources that are refreshed using machine learning and human validation. Craft claims its revenue has grown threefold in 2020.

,,Lambda School raises $74M for virtual coding school

Coding schools have been on the rise even before quarantine, and in post-covid times with people staying at home and pondering their next careers, coding schools have been thriving. Lambda School runs virtual 9-month and 18-month computer science courses for $30,000. And you won’t have to start paying them back until you land a job that makes at least $50,000.

Lambda School raised $74M from Gigafund, and is aiming to be profitable. The company claims to have 3,000 virtual students. Lambda School offers certificates and not accreditations, though students who graduate from accredited universities don’t necessarily come out with a solid education that is suited for the modern world. There is some criticism about their deferred payment model and the risk Lambda School incurs if/when students drop out of the program before completion. Lambda School claims they will use the funds to meet the growing demand for their platform.

About Us

We’re your next CFO. You need more than a bookkeeper and less than a full-time CFO. Accounting firms or bookkeepers simply do your yearly tax return but who can help you with the day-to-day accounting & finance complexities that every small business faces? We’re the tenacious partner who will work closely with you to create a strategic path forward. A path that positions your startup for optimum performance, prolonged growth, and limited risks.


According to this ,,article by The Fintech Times, 41% of businesses plan to scrap their banking providers due to slow support during COVID-19. If your business is having trouble with liquidity or managing banking relationships, visit us today at ,, Our track record speaks for itself. We’ve successfully raised over $65 million in VC funding and have 15+ years of finance experience under our belt. Our services include financial modelling, data analytics, capital fundraising, transaction advisory, and accounting system setup.


Still not convinced? Ask yourself this:

  • Is your financial system set up and organized?
  • Do you know your company’s outlook in 3-5 years?
  • Are you aware of key factors that impact your financials?
  • Are you prepared for tough questions from VCs?

Focus on generating revenue. Leave the rest to us. ,,Contact us today for a free consultation.

Until next time,

Rich Zhou, CEO

Get your free assessment

Here’s what we’ll do:

1. Assess your business in order to recommend a plan that’s right for you.
2. Introduce you to some of the coolest cloud accounting apps around.
3. Provide guidance on increasing visibility into your business and saving time on your accounting!