Fake alarm?

8

October

2021

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It seems that deepfakes increase in popularity, but more alarming is how they just slightly differentiate from reality. A deepfake is a video where someone pretends to be a well-known person, like a politicus, which didn’t happen. How risky are those videos?

This technology was flourishing in 2017 and two years later people are worrying about the consequences of deepfakes. It could possibly lead to fraud and extortion. In the meantime it is 2021 and the technology has been developed quickly. At this moment the quality of deepfakes is that high that you can’t see the difference with reality.

However, it seems like the consequences have been overestimated. Abuse of deepfakes for political influences has not been taken place yet. Not in the Dutch elections as in the American elections. According to Theo Gevers, professor at University of Amsterdam deepfakes offer some opportunities to the market. For example, Lays simulated Lionel Messi who addresses his fans which seems to be very plausible.

Deepfakes could also have positive contributions. For example, deepfakes are used in grieving processes or for trainings and therapies. A person could have a conversation with a virtual version of a deceased person. Doctors could use deepfakes to practice their patient appointments. It could be also used in conflict situations, for example a divorce.

All these examples show that there are both positive and negative consequences. However, which consequences will be more dominant? Should we still be alert of the negative consequences? Or should we support the development of deepfakes? If that is the case how should the society regulate the use of deepfakes?

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Jump on the fast delivery train

16

September

2021

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Rapid grocery delivery services as Gorillas, Zapp, and Getir tend to crowd city streets not only across the Netherlands but across the world. These services disrupt the traditional supermarket industry and even their online delivery services with their “faster than you” 10-minutes delivery promise. The speed of Gorilla’s deliveries matches the astonishing pace of the market disruption.

Flitsbezorger Zapp van start in Amsterdam | Levensmiddelenkrant

Covid-19

Why would you use as an inhabitant of Rotterdam where you have access supermarket within a range of 1 kilometer a fast grocery delivery service? Off course there is an excuse that we were in the middle of a lockdown which definitely increased the popularity of these delivery services. As a result of the lockdown millions of people started using online grocery services. I must admit, it is really convenient when you are waking up and noticing that you run out of bread the day before there is a possibility to just order with the Gorilla’s app some juice and eggs which will be delivered in 10 minutes so you don’t have to walk in your pyjama’s to the supermarket.

Business model

The question everyone asks to themselves is how is it possible to guarantee the 10 minutes delivery and offer qualitative products. The process is as simple as it sounds. As a customer you could shop in the app and place an order. After you have confirmed your order there is a sound going off in a dark store, probably within a range of 2 kilometers, to notify the order pickers to pick your orders. A picker selects a basket and collects all the items you have ordered and pack them in bags for the rider. The rider will bike with an e-bike to your place and delivers the items within the promised 10 minutes.

What makes it a lucrative business?

The part that amazes me is that there are lots of investors who invest billions in these businesses, but why would they think this business will be profitable? At first, technologies enable this business model, which is very innovative and really meets the rising demand as we saw as a result of covid-19. However, as coming along with digital business models you need a high volume to cover the fixed costs. For that reason the customer acquisitions costs are relatively high. When you would start making use of this service at different grocery providers you might have a month free groceries as a result of all the freebies these services offer. This is all to get attention and connect customers to their business and convert them to loyal customers. Nevertheless, Marco Heimensem (2021) states that these rapid grocery delivery services will only be profitable when a customer would order on average for €25,- which is not the case at the moment. So how will these businesses increase their sales volume to become profitable? Or are there any other reasons these investors take the high risks?

Sources:

*https://www.businessinsider.nl/gorillas-verdienmodel-online-boodschappen/

* https://www.ft.com/content/8f8b3d61-8fd4-4dd4-ae9e-d0c7b69e5234

* https://www.m3consultancy.nl/blog/are-rapid-grocery-delivery-companies-profitable

* https://www.nytimes.com/2021/07/27/business/groceries-in-10-minutes-delivery-start-ups-crowd-city-streets-across-globe.html

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