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  • Despite TikTok ban threat, influencers are flocking to a new app from its parent company | CNN Business

    Despite TikTok ban threat, influencers are flocking to a new app from its parent company | CNN Business

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    New York
    CNN
     — 

    In the days after TikTok’s CEO was grilled by Congress for the first time, many TikTok users began posting about an alternative platform called Lemon8, sometimes with eerily similar language.

    Multiple creators described the app as being like “if Pinterest and Instagram had a baby, with TikTok’s algorithm.” Some compared it to TikTok circa 2020 and encouraged other influencers to join the app before it grows. They also asked followers to share their Lemon8 usernames in the comments.

    As it turned out, the app wasn’t just a random alternative to TikTok. Lemon8 is a social media platform launched in the United States earlier this year by TikTok’s Chinese parent company ByteDance amid federal and state efforts to ban or restrict TikTok in the country over national security concerns.

    The similarities in the videos comparing the new service to Instagram and Pinterest, which were posted by both English and Spanish-speaking creators, raised questions about whether people were being paid to promote the new app on TikTok. But despite that speculation — and the mounting scrutiny on TikTok and ByteDance — a growing number of US users and influencers are now eagerly touting Lemon8, with its focus on photos and highly curated, informational or “aspirational” content.

    “We have to talk about TikTok’s new sister app,” a creator said in one such video.

    “I’ve seen a lot of bigger content creators that I love on it and promoting it on their Instagram stories, so I thought, ‘okay, it’s my time to hop on this bandwagon,’” said Melanie Cruz, who got her start creating content as a YouTube vlogger in high school around 2018. “I like that it’s something simple, it’s nothing too in your face … it’s not overwhelming.”

    Lemon8 has been downloaded just over one million times in the United States since it became available on US app stores in February, and had around half a million daily active US users last month, according to intelligence platform Apptopia.

    The early traction for Lemon8 hints at the whack-a-mole challenge lawmakers could face in reining in TikTok and other social media platforms. It also carries some hints of TikTok’s own rise, which was reportedly fueled in part by ByteDance spending heavily to advertise the service on rival platforms Facebook and Snapchat. This time, however, the best place to promote the next TikTok may be on TikTok itself.

    The New York Times reported last month that ByteDance had begun early marketing efforts for Lemon8 that included working with influencers. Now, some creators featured on Lemon8’s “for you” feed appear to be disclosing their work with the company using the hashtag #Lemon8Partner in their captions.

    A ByteDance company source said that Lemon8 is still in its early days and testing how to work with creators. They said ByteDance has not launched any formal marketing efforts for Lemon8, but in some cases has made deals to pay creators to post on the platform. However, they denied rumors that ByteDance had paid creators to promote the new app on TikTok.

    ByteDance has also recently listed open jobs for Lemon8 creator partnerships roles, according to postings viewed by CNN. “Lemon8 is a social media platform committed to building a diverse and inclusive community where people can discover new content and creators every day,” the job postings read.

    Lemon8’s photo-heavy focus marks a stark shift away from most of the major social apps that, following TikTok’s lead, have gone all-in on endlessly scrollable short-form videos in recent years.

    Lemon8’s homepage is a “for you” feed where users can scroll through content, similar to TikTok, but instead of videos, the feed is two columns of still images. When you click through to a post, it might be a single photo or a carousel of images. It’s also possible to post videos on the app, but they’re less popular.

    The app is heavily centered on beauty and lifestyle content — the “for you” page can be sorted into six categories including fashion, home and travel. Many of the posts feature lengthy captions, and users can also edit images to include text overlays. On top of similarities to Instagram and Pinterest, Lemon8 looks nearly identical to the Chinese app Xiaohongshu.

    Still, the app lacks some standard social platform features such as messaging and the option to tag other users in posts.

    A recent scroll through Lemon8’s “for you” page showed before-and-after photos of a botox treatment, a “no restrictions” day-long eating plan, book recommendations, black tie wedding attire tips and “10 recent girly Amazon buys I do NOT regret.”

    “It seems like people love it or hate it,” Madison Bravenec, a health coach and content creator, said of the app’s focus on aesthetics. But she added that the app’s targeted focus on certain types of content has made it easier to find a community that’s interested in the wellness content she likes to create, whereas the most popular posts on TikTok often have to appeal to a wider audience.

    Some creators say Lemon8 is filling a hole in the social media ecosystem that was left when Instagram moved to prioritize short-form video content in order to better compete with TikTok, frustrating many creators who joined the app for its original focus on photos.

    “We’re not videographers, we’re not the types of people who would like to change the ways we create content and communicate with others just because a platform is prioritizing one deliverable over the other,” said Can Ahtam, a professional photographer who joined Instagram more than a decade ago. “So all of us did feel the impact of reach being lower with the photos we were sharing [on Instagram].”

    Ahtam added: “If we were to compare them side-by-side right now, Lemon8 would have the upper hand in photos being shared.”

    Lemon8’s userbase remains a far cry from the 150 million users TikTok says it has in the United States.

    Still, in videos reviewing Lemon8, some creators have pondered whether the app could ultimately function as a replacement if TikTok were to get banned in the United States, preserving the content recommendation algorithm that helped make TikTok one of the country’s most popular apps and launched the careers of countless influencers.

    But if TikTok were to go down, Lemon8 would likely go with it, according to James Lewis, director of the strategic technologies program at the Center for Strategic and International Studies.

    “The concern is still the same, which is that ByteDance is a Chinese company subject to Chinese law,” Lewis said. “If it collects [users’ personal] information, then you’ve got the same problem.”

    TikTok, for its part, has said that its app does not pose a risk to US users, and that the Chinese government has never asked for US user data.

    The practical ramifications for creators of a TikTok (and, perhaps by extension, Lemon8) ban — if one were enacted — would still likely be months away, if not more. Lewis said he doesn’t expect any nationwide legislation to be passed before the end of this year, and it would almost certainly face legal challenges that could drag out its implementation if it did.

    By launching a new app even with TikTok in the spotlight, “ByteDance clearly doesn’t feel like they’re at risk,” Lewis said. And many creators say they’re not necessarily worried either.

    Even if TikTok and Lemon8 were banned, Cruz said, “I already have a following on all the other platforms.”

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  • Lyft stock plunges nearly 15% on weaker than expected revenue forecast | CNN Business

    Lyft stock plunges nearly 15% on weaker than expected revenue forecast | CNN Business

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    CNN
     — 

    Lyft may have a bumpy road ahead to recovery.

    The ride-hailing company reported revenue of $1 billion for the quarter ending in March, marking a 14% year-over-year increase and beating Wall Street estimate’s. But the company forecast weaker-than-expected revenue for the current quarter, which was enough to jitter investors.

    Shares of Lyft plunged nearly 15% in after-hours trading Thursday following the earnings results.

    The latest earnings report comes on the heels of Lyft shaking up its the C-suite and announcing plans to cut 26% of its employees as it fights for market share and profitability.

    David Risher, who previously worked at Amazon and Microsoft, recently took over as CEO of Lyft and the company’s two co-founders stepped down from their management positions at the company. Risher has been a member of the Lyft board since 2021.

    On a conference call with analysts on Thursday to discuss the results, Risher said Lyft is currently at “an inflection point” as people return to pre-pandemic social habits.

    “I am very aware of our current levels of growth and profitability are not acceptable,” Risher said on the call, his first as CEO. “I am committed to growing Lyft into a large, durable, profitable business, that our riders, drivers and shareholders love, and I look forward to keeping you informed on our progress.”

    Compared to its chief rival Uber, Lyft has so far struggled to bounce back from the pandemic’s hit to its business. While Uber diversified its business beyond ride-hailing by delivering meals and grocery items during the health crises, Lyft never did. Uber also was able to attract drivers back to the platform better than Lyft as pandemic restrictions eased in the U.S.

    Earlier this week, Uber said in its quarterly earnings report that revenue was up 29%, as demand for its rideshare and delivery services held firm despite lingering recession fears.

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  • Chinese star banker Bao Fan detained by country’s top anti-graft body, state media says | CNN Business

    Chinese star banker Bao Fan detained by country’s top anti-graft body, state media says | CNN Business

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    Hong Kong
    CNN
     — 

    One of China’s top tech bankers, who went missing in February, has been in the custody of the country’s top anti-graft watchdog since his disappearance and has had his detention extended, according to a state media report.

    The Economic Observer, a well regarded financial publication, reported that Bao Fan — founder and CEO of Hong Kong-listed China Renaissance, a boutique investment bank -— was taken away on February 7 by officials from the Central Commission for Discipline Inspection (CCDI) in an investigation into suspected corporate bribery.

    It said, citing an unnamed source, that his detention was extended on May 7 for three months.

    The mysterious disappearance of Bao has sent a chill through financial markets and China’s tech sector. Shares in China Renaissance had plunged more than 20% until they were suspended from trading in early April. The company also delayed the release of its annual results, because its auditors were unable to reach Bao.

    China Renaissance, which was responsible for a string of major Chinese tech deals since it was founded in 2005, didn’t immediately respond to a CNN request for comment.

    The CCDI is the top anti-graft body of the ruling Communist Party and is responsible for investigating corruption.

    China Renaissance had previously revealed only that Bao was “cooperating in an investigation” being carried out by certain authorities in the country. But it gave no other details.

    Bao is known as a veteran dealmaker who worked closely with top tech companies in China. He helped broker the 2015 merger between two of the country’s leading food delivery services, Meituan and Dianping. Today, the combined company’s “super app” platform is ubiquitous in China.

    His February disappearance coincided with a sweeping anti-corruption crackdown launched by the ruling Communist Party into the financial sector, which has ensnared more than a dozen senior executives at China’s biggest financial institutions.

    Analysts believe the crackdown is a new wave of leader Xi Jinping’s existing anti-graft campaign, through which he is believed to be further consolidating his power amid domestic and external challenges.

    The specific agencies handling Bao’s case include the CCDI’s international cooperation bureau and Beijing’s municipal anti-graft authorities, the Economic Observer said.

    Bao’s detention was related to another case involving Cong Lin, a former executive at his company, who had previously worked for China’s largest state owned bank for more than two decades, the newspaper added.

    Cong Lin, who became president of China Renaissance in July 2020, had previously served in a variety of executive roles at the Industrial and Commercial Bank of China, according to public company records.

    Cong has been detained by anti-corruption authorities since September for matters related to his tenure at ICBC Financial Leasing, the Economic Observer said. The details of Cong’s detention were previously reported by several Chinese media outlets.

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  • Amazon is trying to make it simpler to sift through thousands of user reviews | CNN Business

    Amazon is trying to make it simpler to sift through thousands of user reviews | CNN Business

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    CNN
     — 

    Amazon is experimenting with using artificial intelligence to sum up customer feedback about products on the site, with the potential to cut down on the time shoppers spend sifting through reviews before making a purchase.

    On the Amazon product page for Apple’s third-generation AirPods, for example, the AI feature now sums up the more than 4,000 user ratings to note that the wireless headphones “have received positive feedback from customers regarding their sound quality and battery life.” But, it adds, “mixed opinions were also expressed about the performance, durability, fit, comfort, and value of the headphones.”

    The summary features the disclaimer: “AI-generated from the text of customer reviews.”

    “We are significantly investing in generative AI across all of our businesses,” Amazon said in a statement to CNN on Monday, referring to the technology that underpins services such as ChatGPT.

    The effort, first reported by CNBC, marks Amazon’s latest attempt to incorporate generative AI into its services and has the potential to help customers quickly determine the pros and cons of various products. But there are limits.

    For starters, the AI wording is not always intuitive. In the AirPods review, for example, the blurb says “all customers who mentioned stability had a negative opinion about it.”

    As with other generative AI tools, which are trained on vast troves of data online to come up with responses, there are also concerns about tone, accuracy and its potential to “hallucinate” details.

    “Given that generative AI is based on probability, mistakes are possible … and summaries may not be an accurate reflection of customer reviews,” said Reece Hayden, a senior analyst at market research firm ABI Research. “The possibility of hallucinations will be a worry for customers and merchants.”

    Hayden also questions whether the tool will be able to decipher fraudulent or bot-created reviews. “These reviews will be treated equally and therefore the summary may reflect fake, non-customer reviews,” Hayden said. (Amazon didn’t immediately respond to a request for comment on this possibility.)

    Amazon isn’t the only e-commerce company blending generative AI into the shopping experience. Some companies such as Shopify and Instacart are using the technology to help inform customers’ shopping decisions. Meanwhile, eBay recently rolled out an AI tool to help sellers generate product listing descriptions.

    Amazon CEO Andy Jassy said in a letter to shareholders in April that the company remains focused on “investing heavily” in the technology “across all of our consumer, seller, brand, and creator experiences.” The company is also reportedly working on adding ChatGPT-like search capabilities for its e-commerce store, and it’s rumored to be planning to use generative AI to bring conversational language to a home robot.

    Last month, Dave Limp, senior VP of devices and services, told CNN there is great interest in bringing generative AI to virtual assistant Alexa, so users can interact with the technology in a more fluid, natural way.

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  • Biden kicks off reelection bid with union rally in Philadelphia | CNN Politics

    Biden kicks off reelection bid with union rally in Philadelphia | CNN Politics

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    CNN
     — 

    President Joe Biden kicked off his reelection campaign Saturday at a union rally in his frequent haunt of Pennsylvania, the state that remains an intersection of his personal and political identities that he hopes can propel him to a second term.

    The first official rally of his final political campaign was a moment for Biden to underscore recent economic wins that undergird his argument for another four years in the White House.

    “Just think back. Remember what it was like when I came to office, we came into office. Remember the mess we inherited,” Biden told the audience in Philadelphia. “Now look at where we are today.”

    To a roaring crowd, who repeatedly cheered “four more years,” the president touted several accomplishments, including the bipartisan infrastructure law, a coronavirus relief package, a bipartisan semiconductor chip manufacturing law and the recently negotiated debt ceiling deal that helped avert a US default.

    Biden also criticized recent Republican tax proposals while describing what he called his middle-class vision for the American economy, referring to it several times as “Biden-omics.”

    Biden made only brief mention of Donald Trump, the current front-runner for the 2024 GOP presidential nomination, steering clear of the former president’s recent federal indictment and arraignment but hitting him on infrastructure.

    “Under my predecessor, infrastructure week became a punchline,” Biden said. “On my watch, we’re making infrastructure a decade headline.”

    First lady Jill Biden, who spoke shortly before her husband, highlighted the president’s optimism. Wearing a corsage to mark their 46th wedding anniversary Saturday, the first lady recalled how she met Biden following the death of his first wife and baby daughter in a tragic car accident that also injured his two sons.

    “What I love about Joe is that even though he has faced unimaginable tragedies, his optimism is undaunted,” Jill Biden said. “His strength is unshakeable.”

    She added that the president was “not done.”

    “He’s ready to finish the job,” she said. “He’s ready to win, and with your help, he will.”

    Though his economic wins were the centerpiece of Biden’s opening campaign event, polls show many voters give him poor marks for his handling of the economy, particularly as prices have soared post-pandemic. Recent figures have shown inflation easing, however, and fears of an imminent recession have faded.

    Biden has said more Americans will come to reward him for his economic stewardship once the benefits of some of his signature legislative achievements, including a new infrastructure law, begin taking hold.

    Labor groups that threw their backing behind Biden ahead of his speech include the AFL-CIO, which said it was the earliest point in a presidential election cycle it had ever endorsed a candidate.

    “There’s absolutely no question that Joe Biden is the most pro-union president in our lifetimes,” said AFL-CIO President Liz Shuler. “From bringing manufacturing jobs home to America to protecting our pensions and making historic investments in infrastructure, clean energy and education, we’ve never seen a president work so tirelessly to rebuild our economy from the bottom up and middle out.”

    Supporters cheer before Biden speaks at the Pennsylvania Convention Center.

    Biden, who made his first stop after announcing his reelection bid a legislative conference for North America’s Building Trades Unions in Washington, has long relied on union support for his political ambitions.

    “I’m more honored by your endorsement than you can imagine – coming this early, it’s going to make a gigantic difference in this campaign,” Biden said during Saturday’s event in Philadelphia, where he called himself “the most pro-union president in American history.”

    Not all unions have thrown their support behind Biden’s reelection bid. The powerful United Auto Workers said last month it was holding off on endorsing Biden, citing concerns over his policies that would encourage a transition to electric vehicles, according to a memo from the union.

    The UAW has more than 400,000 members, and Biden has touted its support in the past. Last year he called American autoworkers “the most skilled autoworkers in the world.” The group’s membership is mostly concentrated in Michigan, a presidential election battleground.

    Biden also rankled union members last year when he signed legislation that averted a nationwide rail strike – a step he said was necessary to prevent a stoppage of important freight movement.

    Biden’s campaign has leaned into his economic record, including releasing a 60-second ad titled “Backbone” last month. The spot struck a populist tone, mixing audio of the president speaking about “investing in places and people that have been forgotten” and a narrator ticking through the administration’s work to boost infrastructure and manufacturing in the country.

    “Joe Biden’s building an economy that leaves no city, no town, no American behind,” the narrator says.

    This story has been updated with additional information.

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