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Nectar’s sonar bottle caps could save $50B in stolen booze

Bars lose 20 percent of their alcohol to overpours and “free” drinks for friends. That amounts to $50 billion per year in booze that mysteriously disappears, making life tough for every pub and restaurant. Nectar wants to solve that mystery with its ultrasound depth sensing bottle caps that measure how much liquid is left in a bottle by measuring how long it takes a sonar pulse to bounce back. And now it’s bringing real-time pour tracking to beer with its gyroscopic taps. The result is that bar managers can find out who’s pouring too much or giving away drink, which promotions are working, when to reorder bottles without keeping too much stock on hand, and avoid wasting hours weighing or eyeballing the liquor level of their inventory.

Nectar’s solution to alcohol shrinkage has now attracted a $10 million Series A led by DragonCapital.vc and joined by former Campari chairman Gerry Ruvo who will join the board. “Not a lot of technology has come to the bottle” Nectar CEO Aayush Phumbhra says of ill-equipped bars and restaurants. “Liquor is their highest margin and highest cost item. If you don’t manage it efficiently, you go out of business.” Other solutions can look ugly to customers, forcibly restrict bartenders, or take time and money to install and maintain. In contrast, Phunumbhra tells me “I care about solving deep problems by building a solution that doesn’t change behavior.”

Investors were eager to back the CEO, since he previously co-founded text book rental giant Chegg — another startup disrupting an aged market with tech. “I come from a pretty entrepreneurial family. No one in my family has ever worked for anyone else before” Phunumbhra says with a laugh. He saw an opportunity in the stunning revelation that the half-trillion dollar on-premises alcohol business was plagued by missing booze and inconsistent ways to track it.

Typically at the end of a week or month, a bar manager will have staff painstakingly look at each bottle, try to guess what percent remains, and mark it on a clipboard to be loaded into a spreadsheet later. While a little quicker, that’s very subjective and in-accurate More advanced systems see every bottled weighed to see exactly how much is left. If they’re lucky, the scale connects to a computer, but they still have to punch in what brand of booze they’re sizing up. But the process can take many hours, which amounts to costly labor and infrequent data. None of these methods eliminate the manual measurement process or give real-time pour info.

So with $6 million in funding, Nectar launched in 2017 with its sonar bottle caps that look and operate like old-school pourers. When bars order them, they come pre-synced and labeled for certain bottle shapes like Petron or Jack Daniels. Their Bluetooth batteries last a year and connect wirelessly to a base hub in the bar. With each pour, the sonar pulse determines how much is in the bottle and subtracts it from the previous measurement to record how much was doled out. And the startup’s new gyroscopic beer system is calibrated to deduce pour volume from the angle and time the tap is depressed without the need for a sensor to be installed (and repaired) inside the beer hose.

Bar managers can keep any eye on everything throughout the night with desktop, iOS, and Android apps. They could instantly tell if a martini special is working based on how much gin across brands is being poured, ask bartenders to slow their pours if they’re creeping upwards in volume, or give the green light to strong pours on weeknights to reward regular customers. “Some bars encourage overpours to get people to keep coming back” says local San Francisco celebrity bartender Broke-Ass Stuart, who tells me pre-measured pourers can save owners money but cost servers tips.

Nectar now sells self-serve subscriptions to its hardware and software, with a 20 cap package costing $99 per month billed annually with free yearly replacements. It’s also got a free 2 tap trial package, or a $399 per month enterprise subscription for 100 taps. Nectar is designed to complement bar point of sale systems. And if a bar just wants the software, Nectar just launched its PrecisionAudit app where staff tap the current liquid level on a photo of each different bottle for more accurate eyeballing. It’s giving a discount rate of $29.99 per month on the first 1000 orders.

After 2 million pours measured, the business is growing 200 percent quarter-over-quarter as bowling alley chains and stadiums sign up for pilots. The potential to change the booze business seduced investors like Tinder co-founders Sean Rad and Justin Mateen, Palantir co-founder Joe Lonsdale, and the founding family of the Modelo beer company. Next, Nectar is trying to invent a system for wine. That’s trickier since its taps would need to be able to suck the air out of the bottles each night.

The big challenge will be convincing bars to change after tracking inventory the same way for decades. No one wants to deal with technical difficulties in a jam-packed bar. That’s partly why Nectar’s subscription doesn’t force owners to buy its hardware up front.

fIf Nectar can nail not only the tech but the bartender experience, it could pave a smoother path to hospitality entrepreneurship. Alcohol shrinkage is one factor leading to the rapid demise of many bars and restaurants. Plus, it could liberate bartenders from measuring bottles into the wee hours. Phunumbhra “They’re coming in on weekends and working late. We want them to spend that time with their families and on customer service.”

Nectar’s sonar bottle caps could save $50B in stolen booze

Bars lose 20 percent of their alcohol to overpours and “free” drinks for friends. That amounts to $50 billion per year in booze that mysteriously disappears, making life tough for every pub and restaurant. Nectar wants to solve that mystery with its ultrasound depth sensing bottle caps that measure how much liquid is left in a bottle by measuring how long it takes a sonar pulse to bounce back. And now it’s bringing real-time pour tracking to beer with its gyroscopic taps. The result is that bar managers can find out who’s pouring too much or giving away drink, which promotions are working, when to reorder bottles without keeping too much stock on hand, and avoid wasting hours weighing or eyeballing the liquor level of their inventory.

Nectar’s solution to alcohol shrinkage has now attracted a $10 million Series A led by DragonCapital.vc and joined by former Campari chairman Gerry Ruvo who will join the board. “Not a lot of technology has come to the bottle” Nectar CEO Aayush Phumbhra says of ill-equipped bars and restaurants. “Liquor is their highest margin and highest cost item. If you don’t manage it efficiently, you go out of business.” Other solutions can look ugly to customers, forcibly restrict bartenders, or take time and money to install and maintain. In contrast, Phunumbhra tells me “I care about solving deep problems by building a solution that doesn’t change behavior.”

Investors were eager to back the CEO, since he previously co-founded text book rental giant Chegg — another startup disrupting an aged market with tech. “I come from a pretty entrepreneurial family. No one in my family has ever worked for anyone else before” Phunumbhra says with a laugh. He saw an opportunity in the stunning revelation that the half-trillion dollar on-premises alcohol business was plagued by missing booze and inconsistent ways to track it.

Typically at the end of a week or month, a bar manager will have staff painstakingly look at each bottle, try to guess what percent remains, and mark it on a clipboard to be loaded into a spreadsheet later. While a little quicker, that’s very subjective and in-accurate More advanced systems see every bottled weighed to see exactly how much is left. If they’re lucky, the scale connects to a computer, but they still have to punch in what brand of booze they’re sizing up. But the process can take many hours, which amounts to costly labor and infrequent data. None of these methods eliminate the manual measurement process or give real-time pour info.

So with $6 million in funding, Nectar launched in 2017 with its sonar bottle caps that look and operate like old-school pourers. When bars order them, they come pre-synced and labeled for certain bottle shapes like Petron or Jack Daniels. Their Bluetooth batteries last a year and connect wirelessly to a base hub in the bar. With each pour, the sonar pulse determines how much is in the bottle and subtracts it from the previous measurement to record how much was doled out. And the startup’s new gyroscopic beer system is calibrated to deduce pour volume from the angle and time the tap is depressed without the need for a sensor to be installed (and repaired) inside the beer hose.

Bar managers can keep any eye on everything throughout the night with desktop, iOS, and Android apps. They could instantly tell if a martini special is working based on how much gin across brands is being poured, ask bartenders to slow their pours if they’re creeping upwards in volume, or give the green light to strong pours on weeknights to reward regular customers. “Some bars encourage overpours to get people to keep coming back” says local San Francisco celebrity bartender Broke-Ass Stuart, who tells me pre-measured pourers can save owners money but cost servers tips.

Nectar now sells self-serve subscriptions to its hardware and software, with a 20 cap package costing $99 per month billed annually with free yearly replacements. It’s also got a free 2 tap trial package, or a $399 per month enterprise subscription for 100 taps. Nectar is designed to complement bar point of sale systems. And if a bar just wants the software, Nectar just launched its PrecisionAudit app where staff tap the current liquid level on a photo of each different bottle for more accurate eyeballing. It’s giving a discount rate of $29.99 per month on the first 1000 orders.

After 2 million pours measured, the business is growing 200 percent quarter-over-quarter as bowling alley chains and stadiums sign up for pilots. The potential to change the booze business seduced investors like Tinder co-founders Sean Rad and Justin Mateen, Palantir co-founder Joe Lonsdale, and the founding family of the Modelo beer company. Next, Nectar is trying to invent a system for wine. That’s trickier since its taps would need to be able to suck the air out of the bottles each night.

The big challenge will be convincing bars to change after tracking inventory the same way for decades. No one wants to deal with technical difficulties in a jam-packed bar. That’s partly why Nectar’s subscription doesn’t force owners to buy its hardware up front.

fIf Nectar can nail not only the tech but the bartender experience, it could pave a smoother path to hospitality entrepreneurship. Alcohol shrinkage is one factor leading to the rapid demise of many bars and restaurants. Plus, it could liberate bartenders from measuring bottles into the wee hours. Phunumbhra “They’re coming in on weekends and working late. We want them to spend that time with their families and on customer service.”

Amazon has turned warehouse tasks into a (literal) game

Working at an Amazon fulfillment center is tough and tedious. Stories of problematic working conditions have plagued the company for years now, and pressure has likely only increased as the retail giant is pushing to get packages out even faster.

To give the company some credit, it has worked to improve conditions, including the addition of a $15 minimum wage and automating certain tasks with the help of its growing robotics offering. Turns out the company has also been, quite literally, gamifying certain tasks.

WaPo (which, incidentally, is also own by Mr. Bezos) has a writeup of an “experimental” video game designed to motivator workers to fill orders. The games, which is apparently optional for employees, live on workstation screens, awarding points for fulfilling orders and pitting teams against one another in the process.

As the story notes, Amazon’s not alone in the idea. Gig-based companies like Uber and Lyft are similarly incentivizing workers with rewards for driving longer. In an age when we’ve gamified our own step counts through Fitbit and the like, it’s probably no surprise that companies are taking similar tacts for their duller positions.

Still, the whole thing is a bit odd — and probably a good indication of how repetitive this tasks can be. As we noted on a recent trip to the company’s massive Staten Island fulfillment center, the “picker” and “stower” gigs work closely with Amazon’s shelf sporting robots to get packages to their destination.

Minecraft to release new augmented reality game ‘Minecraft Earth’

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The beta version will be available for iOS and Android mobile devices this coming summer, with participation sign ups already open to those who are 18 and older. Read more…

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Gender, race and social change in tech; Moira Weigel on the Internet of Women, Part Two

Tech ethics can mean a lot of different things, but surely one of the most critical, unavoidable, and yet somehow still controversial propositions in the emerging field of ethics in technology is that tech should promote gender equality. But does it? And to the extent it does not, what (and who) needs to change?

In this second of a two-part interview “On The Internet of Women,” Harvard fellow and Logic magazine founder and editor Moira Weigel and I discuss the future of capitalism and its relationship to sex and tech; the place of ambivalence in feminist ethics; and Moira’s personal experiences with #MeToo.

Greg E.: There’s a relationship between technology and feminism, and technology and sexism for that matter. Then there’s a relationship between all of those things and capitalism. One of the underlying themes in your essay “The Internet of Women,” that I thought made it such a kind of, I’d call it a seminal essay, but that would be a silly term to use in this case…

Moira W.: I’ll take it.

Greg E.: One of the reasons I thought your essay should be required reading basic reading in tech ethics is that you argue we need to examine the degree to which sexism is a part of capitalism.

Moira W.: Yes.

Greg E.: Talk about that.

Moira W.: This is a big topic! Where to begin?

Capitalism, the social and economic system that emerged in Europe around the sixteenth century and that we still live under, has a profound relationship to histories of sexism and racism. It’s really important to recognize that sexism and racism themselves are historical phenomena.

They don’t exist in the same way in all places. They take on different forms at different times. I find that very hopeful to recognize, because it means they can change.

It’s really important not to get too pulled into the view that men have always hated women there will always be this war of the sexes that, best case scenario, gets temporarily resolved in the depressing truce of conventional heterosexuality.  The conditions we live under are not the only possible conditions—they are not inevitable.

A fundamental Marxist insight is that capitalism necessarily involves exploitation. In order to grow, a company needs to pay people less for their work than that work is worth. Race and gender help make this process of exploitation seem natural.

Image via Getty Images / gremlin

Certain people are naturally inclined to do certain kinds of lower status and lower waged work, and why should anyone be paid much to do what comes naturally? And it just so happens that the kinds of work we value less are seen as more naturally “female.” This isn’t just about caring professions that have been coded female—nursing and teaching and so on, although it does include those.

In fact, the history of computer programming provides one of the best examples. In the early decades, when writing software was seen as rote work and lower status, it was mostly done by women. As Mar Hicks and other historians have shown, as the profession became more prestigious and more lucrative, women were very actively pushed out.

You even see this with specific coding languages. As more women learn, say, Javascript, it becomes seen as feminized—seen as less impressive or valuable than Python, a “softer” skill. This perception, that women have certain natural capacities that should be free or cheap, has a long history that overlaps with the history of capitalism.  At some level, it is a byproduct of the rise of wage labor.

To a medieval farmer it would have made no sense to say that when his wife had their children who worked their farm, gave birth to them in labor, killed the chickens and cooked them, or did work around the house, that that wasn’t “work,” [but when he] took the chickens to the market to sell them, that was. Right?

A long line of feminist thinkers has drawn attention to this in different ways. One slogan from the 70s was, ‘whose work produces the worker?’ Women, but neither companies nor the state, who profit from this process, expect to pay for it.

Why am I saying all this? My point is: race and gender have been very useful historically for getting capitalism things for free—and for justifying that process. Of course, they’re also very useful for dividing exploited people against one another. So that a white male worker hates his black coworker, or his leeching wife, rather than his boss.

Greg E.: I want to ask more about this topic and technology; you are a publisher of Logic magazine which is one of the most interesting publications about technology that has come on the scene in the last few years.