Connectivity

Google Indexing Makes WhatsApp Group Links Visible

A journalist has reported on Twitter that WhatsApp groups may not be as secure as users think because the “Invite to Group via Link” feature allows groups to be indexed by Google, thereby making them available across the Internet.

Links Visible

Chats conducted on the end-to-end encrypted WhatsApp can be joined by people who are given an invite URL link but until now it has not been thought that invite links could be indexed by Google (and other search engines) and found in simple searches. However, it appears that group links that have been shared outside of the secure, private messaging app could be found (and joined).

Exposed

The consequences of these 45,000+ invite links being found in searches is that they can be joined and details like the names and phone numbers of the participants can be accessed.  Targeted searches can reveal links to groups based around a number of sensitive subjects.

Links

Even though WhatsApp group admins can invalidate existing links, WhatsApp generates a new link meaning that the original link isn’t totally disabled.

Only Share Links With Trusted Contacts

Users of WhatsApp are warned to share the link only with trusted contacts, and the links that were shown in Google searches appeared because the URLs were publicly listed i.e. shared outside of the app.

Changed

Although Google already offers tools for sites to block content from being listed in search results, since the discovery (and subsequently publicity) of the WhatsApp Invite links being indexed, some commentators have reported that this no longer happens in Google.  It has also been reported, however, that publicly posted WhatsApp Invite links can still be found using other popular search engines.

Recent Security Incident

One other high profile incident reported recently, which may cause some users to question the level of security of WhatsApp was the story about Amazon CEO Jeff Bezo’s phone allegedly being hacked by unknown parties thought to be acting for Saudi Arabia after a mysterious video was sent to Mr Bezo’s phone.

Also, last May there were reports of an attack on WhatsApp which was thought to be a ‘zero-day’ exploit that was used to load spyware onto the victim’s phone.  Once the victim’s WhatsApp had been hijacked and the spyware loaded onto the phone, for example, access may have been given to encrypted chats, photos, contacts and other information.  That kind of attack may also have allowed eavesdropping on calls and turning on the microphone and camera, as well as enabling attackers to alter the call logs and hide the method of infection.  At the time, it was reported that the attack may have originated from a private Israeli company, The NSO Group.

What Does This Mean For Your Business?

In this case, although it’s alarming that the details of many group members may have been exposed, it is likely to be because links for those groups were posted publicly and not shared privately with trusted members as the app recommends.  That said, it’s of little comfort for those who believed that their WhatsApp group membership and personal details are always totally private.  It’s good news, therefore, that Google appears to have taken some action to prevent it from happening in future. Hopefully, other search engines will now do the same.

WhatsApp has end-to-end encryption, which should mean that it is secure, and considering that it has at least 1.5 billion users worldwide, surprisingly few stories have emerged that have brought the general security of the app into question.

‘Runet’ Test – Russia Unplugs Itself From The Internet

A little later than its original planned date of April 1st 2019, a recent test-run has seen Russia successfully ‘unplug’ itself from the Internet and prove that it can create its own state-controlled Intranet.

Successfully Creating The ‘Runet’

The test, which was first announced back in February last year, is reported to have gone ahead without users noticing much difference and created what is effectively a giant, fully isolatable domestic intranet which has been dubbed the ‘Runet’.

Why?

Officially, the test to be able to pull up the drawbridge on the wider global internet is to ensure compliance with Russia’s new law called the Digital Economy National Program which came into force in November 2019.  This will require Russia’s ISPs to show that they can operate in the event of any foreign powers acting to isolate the country online with a “targeted large-scale external influence” i.e. a cyber-attack. For (state-owned) ISP’s, this will mean having to install deep packet inspection (DPI) network equipment which will allow Russia’s telecoms watchdog ‘Roskomnadzor’ to be able to identify traffic sources, filter content, and block certain sites. It has also been reported that, as part of the project to create and run the Runet, Russia is working on creating its own Internet address books.

Another official explanation for the value of the test to create the Runet is that it helped to show any vulnerabilities in the growing ‘Internet of Things’ (IoT).

Control

Although this is the official explanation, some western commentators see this as a move towards tighter control and authoritarian rule in a way that is similar to some other countries.  For example, China, which operates its own Great Firewall of China (GFW) for Internet censorship to block access to many foreign websites and to slow down and monitor cross-border internet traffic. Also, Iran operates its own National Information Network, run by the state-owned Telecommunication Company of Iran, which controls access to the web and polices content.

Difficult To Circumvent

Those thinking of circumventing the Runet and other censorship are likely to find it difficult as virtual private networks (VPNs) will not work with the Runet in place and many commentators think that it is likely that the Kremlin will try to stop access to end-to-end encrypted apps e.g. Telegram or WhatsApp.

Interfering

It is likely that one good reason for Russia to be able to cut itself off from the wider Internet is to protect itself from cyber threats in what now appears to be an ongoing war of interference, misinformation, and cyber-attacks between many states.  For example, Russia was shown to have interfered with the last U.S. presidential election and has itself been the subject of large-scale cyber-attacks. That said, the Chinese recently accused the U.S. of conducting “large-scale, organised and indiscriminate cyber theft” after it was revealed that since the 1970s, America’s CIA has been monitoring hundreds of countries via the Swiss cryptography firm Crypto AG.

What Does This Mean For Your Business?

For the Russian government, being able to exert tight control and conduct censorship on this scale, and to operate through a small number of state-owned suppliers not only guards against misinformation and cyber threats but also gives the government the opportunity to wield immense political power over its people. The move is, obviously, being greeted with suspicion and criticism from the west, with concern about the rights of Russian citizens.

Also, for non-Russian companies hoping to do business there, an inward-looking, state-controlled Intranet that favours Russian companies, particularly with tech and communications products and services would make trade there very difficult. Many western commentators are now worried that Russia may be going the same way as China in terms of censorship and access to the world by digital means.

Featured Article – Proposed New UK Law To Cover IoT Security

The UK government’s Department for Digital, Culture, Media and Sport (DCMS), has announced that it will soon be preparing new legislation to enforce new standards that will protect users of IoT devices from known hacking and spying risks.

IoT Household Gadgets

This commitment to legislate leads on from last year’s proposal by then Digital Minister Margot James and follows a seven-month consultation with GCHQ’s National Cyber Security Centre, and with stakeholders including manufacturers, retailers, and academics.

The proposed new legislation will improve digital protection for users of a growing number of smart household devices (devices with an Internet connection) that are broadly grouped together as the ‘Internet of Things’ (IoT).  These gadgets, of which there is an estimated 14 billion+ worldwide (Gartner), include kitchen appliances and gadgets, connected TVs, smart speakers, home security cameras, baby monitors and more.

In business settings, IoT devices can include elevators, doors, or whole heating and fire safety systems in office buildings.

What Are The Risks?

The risks are that the Internet connection in IoT devices can, if adequate security measures are not in place, provide a way in for hackers to steal personal data, spy on users in their own homes, or remotely take control of devices in order to misuse them.

Default Passwords and Link To Major Utilities

The main security issue of many of these devices is that they have pre-set, default unchangeable passwords, and once these passwords have been discovered by cyber-criminals, the IoT devices are wide open to being tampered with and misused.

Also, IoT devices are deployed in many systems that link to and are supplied by major utilities e.g. smart meters in homes. This means that a large-scale attack on these IoT systems could affect the economy.

Examples

Real-life examples of the kind of IoT hacking that the new legislation will seek to prevent include:

– Hackers talking to a young girl in her bedroom via a ‘Ring’ home security camera (Mississippi, December 2019).  In the same month, a Florida family were subjected to vocal, racial abuse in their own home and subjected to a loud alarm blast after a hacker took over their ‘Ring’ security system without permission.

– In May 2018, A US woman reported that a private home conversation had been recorded by her Amazon’s voice assistant, and then sent it to a random phone contact who happened to be her husband’s employee.

– Back in 2017, researchers discovered that a sex toy with an in-built camera could also be hacked.

– In October 2016, the ‘Mirai’ attack used thousands of household IoT devices as a botnet to launch an online distributed denial of service (DDoS) attack (on the DNS service ‘Dyn’) with global consequences.

New Legislation

The proposed new legislation will be intended to put pressure on manufacturers to ensure that:

– All internet-enabled devices have a unique password and not a default one.

– There is a public point of contact for the reporting of any vulnerabilities in IoT products.

– The minimum length of time that a device will receive security updates is clearly stated.

Challenges

Even though legislation could make manufacturers try harder to make IoT devices more secure, technical experts and commentators have pointed out that there are many challenges to making internet-enabled/smart devices secure because:

  • Adding security to household internet-enabled ‘commodity’ items costs money. This would have to be passed on to the customer in higher prices, but this would mean that the price would not be competitive. Therefore, it may be that security is being sacrificed to keep costs down-sell now and worry about security later.
  • Even if there is a security problem in a device, the firmware (the device’s software) is not always easy to update. There are also costs involved in doing so which manufacturers of lower-end devices may not be willing to incur.
  • With devices which are typically infrequent and long-lasting purchases e.g. white goods, we tend to keep them until they stop working, and we are unlikely to replace them because they have a security vulnerability that is not fully understood. As such, these devices are likely to remain available to be used by cyber-criminals for a long time.

Looking Ahead

Introducing legislation that only requires manufacturers to make relatively simple changes to make sure that smart devices come with unique passwords and are adequately labelled with safety and contact information sounds as though it shouldn’t be too costly or difficult.  The pressure of having to display a label, by law, that indicates how safe the item is, could provide that extra motivation for manufacturers to make the changes and could be very helpful for security-conscious consumers.

The motivation for manufacturers to make the changes to the IoT devices will be even greater if faced with the prospect of retailers eventually being barred from selling products that don’t have a label, as was originally planned for the proposed legislation.

The hope from cyber-security experts and commentators is that the proposed new legislation won’t be watered down before it becomes law.

Want A Walkie-Talkie? Now You Can Use Your Phone and MS Teams

Microsoft has announced that it is introducing a “push-to-talk experience” to its ‘Teams’ collaborative platform that turns employee or company-owned smartphones and tablets into walkie-talkies.

No Crosstalk or Eavesdropping

The new ‘Walkie Talkie’ feature will offer clear, instant and secure voice communication over the cloud.  This means that it will not be at risk from traditional analogue (unsecured network) walkie-talkie problems such as crosstalk or eavesdropping, and Microsoft says that because Walkie Talkie works over Wi-Fi or cellular data, it can also be used across geographic locations.

Teams Mobile App

The Walkie Talkie feature can be accessed in private preview in Teams in the first half of this year and will be available in the Teams mobile app.  Microsoft says that Walkie Talkie will also integrate with Samsung’s new Galaxy XCover Pro enterprise-ready smartphone for business.

Benefits

The main benefits of Walkie Talkie are making it easier for firstline workers to communicate and manage tasks as well as reducing the number of devices employees must carry and lowering IT costs.

One Better Than Slack

Walkie Talkie also gives Teams another advantage over its increasingly distant rival Slack, which doesn’t currently have its own Walkie Talkie-style feature, although things like spontaneous voice chat can be added to Slack with Switchboard.

Last month, Microsoft announced that its Teams product had reached the 20 million daily active users (and growing) mark, thereby sending Slack’s share price downwards.

Slack, which has 12 million users (a number which has increased by 2 million since January 2019) appears to be falling well into second place in terms of user numbers to Teams in the $3.5 billion chat-based collaborative working software market.  However, some tech commentators have noted that Slack has stickiness and strong user engagement and that its main challenge is that although large companies in the US use it and like it, they currently have a free version, so Slack will have to convince them to upgrade to the paid-for version if it wants to start catching up with Teams

Apple Watch Walkie-Talkie App

Apple Watch users (Series 1 or later with watch OS 5.3 or later, not in all countries though) have been able to use a ‘Walkie-Talkie’ app since October last year.

What Does This Mean For Your Business?

For businesses using Microsoft Teams, the new Walkie Talkie feature could be a cost-saving and convenient tool for firstline workers, and the fact that it integrates Samsung’s new Galaxy XCover Pro will give it even more value for businesses.

For Microsoft, the new Walkie Talkie feature, along with 7 other recently announced new tools for Teams focused firmly on communication and task management for firstline workers are more ways that Teams can gain a competitive advantage over rival Slack, and increase the value of Office 365 to valuable business customers.

.ORG Silence Continues After ICANN Imposes Temporary Sale Halt

Internet companies are still none-the-wiser about the details of the proposed sale of the .org registry to private equity firm Ethos Capital following DNS overseer ICANN putting a temporary halt on the sale back on 9 December.

What Sale?

The rights to the .org domain registry, one of the largest internet registries in the world, with over 10 million names, was/is due to be sold by ISOC (aka the Internet Society), the parent company of PIR (the organisation that currently runs it) for an as-yet-undisclosed sum to Ethos Capital.

Always Not For Profit

The relatively sudden announcement of the sale caused shock and some dismay within the industry over the thought that a registry that has held its non-profit status since 2003 will now be ending up in private hands. Historically, .org domains have always been the outward sign of non-profit organisations.

About Ethos

Some industry commentators have also expressed concern about the lack of knowledge within the industry about Ethos Capital, and some worries have, therefore, been expressed about how qualified and able they may be to manage the .org registry.

Other Criticism

Other criticisms about the sale, which have been voiced online include:

– Suspicion about possible conflicts of interest e.g. around Fadi Chehade, a former CEO of ICANN who is credited by some with encouraging a free-market approach to internet addresses, and who some appear to believe is connected to Ethos Capital.

– After ICANN lifted the price caps on .org domains for the next 10 years (allowing unlimited price increases on the millions of .org domain names) many high-profile non-profit organisations have rejected ICANN’s claim that the move was simply to make the process consistent with the base form registry agreement and have accused ICANN of disregarding the public interest in favour of ICANN’s own administrative convenience.

– Worries that ICANN’s decision to approve the proposed sale may have been subject to bias and may not have reflected the true strength of feeling against the sale.

– Concerns were even expressed by those who supported the proposal e.g. ICANN’s At Large Advisory Committee (ALAC) and Non-Commercial Stakeholder Group (NCSG).

– Anger that ICANN appeared to move ahead with the decision to lift caps without any explanation, and that there still appears to be a level of secrecy surrounding the sale.

– Suspicion by some that the deal has long been the subject of informal discussion among key players.

Temporary Halt

A temporary halt was placed on the proposed sale of the .org Registry right to Ethos Capital in early December and since then, the Packet Clearing House (PCH) has argued (in a letter to ICANN) that the sale and move to non-profit status would mean less money being spent on .org’s operational costs, and could affect stability and could disrupt “critical real-time functions” of organisations using .org domains.

Silence

There is now a sense of frustration from many parties in the industry over the apparent silence, and the distinct lack of information since the temporary halt was placed on the sale.

What Does This Mean For Your Business?

There are many important organisations that use .org domains e.g. air traffic control, and these, as well as the 10 million others who have .org domains, will be concerned not just about the possible price rises of .orgs due to the lifting of the price cap, but also about the possible disruption and instability that the sale of this kind could cause.

There also appears to be a good deal of anger, concern, and unanswered questions in the Internet market about the decision to sell and the details of the sale, as well as apparent feelings of a possible lack of transparency and feelings that things may possibly have been rushed through with important arguments against the sale not being adequately addressed. That said, ICANN must have seen good enough reason to put a temporary halt on the sale, for the time being.

It remains to be seen exactly what happens next but in the interests of the industry and .org owners, the hope is that there will more communication, information and transparency very soon.

The Battle Between ‘Slack’ and ‘Teams’

With Microsoft’s announcement that it’s Teams product has 20 million daily active users (and growing), sending Slack’s share price downwards (Slack has 12 million users), the battle is well underway in the $3.5 billion chat-based collaborative working software market.

What Is Slack?

Slack, launched in 2013, is a cloud-based set of proprietary team collaboration tools and services. It provides mobile apps for iOS and Android, and is available for the Apple Watch, enabling users to send direct messages, see mentions, and send replies.

Slack teams enable users (communities, groups, or teams) to join through a URL or invitation sent by a team admin or owner. Slack was intended to be an organisational communication tool, but it has gradually morphed into a community platform i.e. it is a business technology that has crossed over into personal use. Slack recently introduced an “email bridge” into its platform that will allow those who only have email to communicate with Slack users.  Back in May last year, ‘Slack’ introduced a new ‘Actions’ feature that made it easier for users to create and finish tasks without leaving by having access to more 3rd party tools.

In October this Year Slack announced that it has 12 million daily active users, which is 2 million increase since January.

What Is Teams?

Teams, announced in November 2016 and launched by Microsoft in 2017, is a platform designed to help collaborative working and combines features such as workplace chat, meetings, notes, and attachments. Described by Microsoft as a “complete chat and online meetings solution”, it normally integrates with the company’s Office 365 subscription office productivity suite. In July 2018, Microsoft introduced a free, basic features version of Teams which did not require an Office 365 account, in order to increase user numbers and tempt users away from Slack.

Microsoft Teams is also the replacement for Skype for Business Online, the support for which will end on 31 July 2021, and all new Microsoft 365 customers have been getting Microsoft Teams by default from 1 September 2019.

Share Tumble For Slack

Slack’s share value fell earlier this year after it announced that its projected sales growth would be lower for the second half of the year. Slack became a publicly-traded company on the New York Stock Exchange in June, and investors have been saying that it will need to maintain an impressive growth rate to compete against competitors like Microsoft (with Teams), Alphabet (Google) and Facebook.

The recent announcement by Microsoft that Teams has 20 million daily active users compared to Slack’s 12 million and has increased daily active users by more than 50% from June caused another downward push on Slack’s share value.

Slack’s Challenge – To Get More Large Paying Customers

Slack, which enjoys popularity in the U.S corporate workplace has been trying to emphasise that it is not just a chat/messaging app, but that it can connect to companies’ other applications in a way that can streamline workflows and aid real value addition and savings.  Slack is, however, facing a challenge in convincing big businesses that it is worthy, paid-for alternative to its more well-known competitors, and according to Bloomberg Intelligence analyst Andrew Eisenson, less than 1% of Slack’s customer base are large customers that spend more than $100,000 a year. One of the problems that Slack has is that although large companies in the US use it and like it, they currently have a free version, so Slack will have to convince them to upgrade to the paid-for version.

Despite having lower user numbers than Teams, some tech commentators have noted that Slack has stickiness and strong user engagement which help to attract businesses that want to get into using workstream collaboration software.

What Does This Mean For Your Business?

Microsoft has the advantage of a very well-known and trusted brand with huge reach, Teams already integrates with Office 365’s subscription office productivity suite, and there’s now a free version that doesn’t even require an Office 365 account.  Also, Teams is set to replace Skype for Business Online next year, and Microsoft has made sure that Skype for Business Online customers know that Microsoft’s investment and interoperability will make the migration to Teams a fairly painless one.

All this means that Teams appears to be in a very good position to continue what has been a rapid growth this year, and despite Slack’s positive features, Slack will have to fight hard to get big businesses interested in order to compete.

For users, there are now several good collaborative working services to choose from, but at the present time, the facts that investors don’t know when Slack is going to be profitable, coupled with a fall in revenue have led some commentators to think that Teams is looking as though it could come out on top.

5G Mobile Network is 450% Faster Than 4G in Tests

Tests by Ookla, the developer of Speedtest.net, are reported to have shown that the new 5G mobile network is 450% faster than 4G.

Speed

According to the Speedtest.net website, the results of the testing of 5G in 29 UK cities during Q3 of 2019 generally show download speeds as being 450-475% faster than those on all mobile technologies combined, and that the 5G download speed in Northern Ireland showed a 618.3% improvement due to the fact that mean mobile download speeds on all technologies are slower in Northern Ireland than elsewhere in the U.K.

The tests also revealed that mean 5G download speeds are uniformly high across the U.K., with only 6 Mbps difference between the fastest country (England) and the slowest (Northern Ireland).

Availability

Speedtest.net says that mobile operators have embraced 5G across the UK this year.  For example, 5G is now commercially available in 22 English cities such as London, Birmingham, Bristol, Liverpool, Manchester and Wolverhampton.

5G is also now available in Edinburgh, Glasgow and Paisley in Scotland, in Belfast in Northern Ireland, and in Cardiff, Llandudno and Penarth in Wales.

Rankings

In terms of ranking operators in terms of their 5G download speed in the UK during Q3 2019, Speedtest.net put EE in first place, O2 in second and Vodafone in third place.

No Three

The Speedtest.net results and analysis didn’t include Three because they currently only offer 5G broadband in certain districts of London and their 5G has not yet been launched.

Three announced earlier this year, however, that new and existing customers with compatible handsets will be able to get 5G at no extra cost(s) when its 5G service is launched.

Upload Speeds Not As Impressive

The test results showed, however, that 5G upload speeds, although good, were not quite as impressive as the download speeds with percentage increases ranging from 38.5% to 110% faster.

Safety Concerns

One issue not covered by the testing was the safety fears surrounding 5G. For example, 5G uses 3 Spectrum bands, low-band spectrum (LTE), mid-band spectrum, and what some believe to be the potentially dangerous mmWave high-frequency spectrum.

The mmWave spectrum, however, is still not close to the kind of ionising wavelengths that can cause damage to DNA and mmWave will mostly be deployed in a spectrum that suffers from high reflection rates – 24 to 29GHz.  This should mean that any absorption by the body will be confined to the surface layers of the skin rather than the deeper tissue that is reached by lower frequency radiation.

What Does This Mean For Your Business?

Ofcom is due to auction additional spectrum for 5G in the 700 MHz and 3.6-3.8 GHz bands in spring 2020 and this should help fuel the further expansion of the 5G networks.  This is likely to be good news for businesses who have been waiting for the speed benefits that 5G can bring, for example in improving file sharing and other communication capabilities.

Although the rollout is currently only confined to major UK cities, which will, of course, favour businesses in those areas, it is good news that 5G has been achieving consistent speeds in its deployments around the world, thereby improving on one of the challenges of 4G.

Different operators look set to take different approaches to their 5G rollouts and offerings, and greater 5G availability will provide a boost to the sales of new generation mobile handsets in the UK where many people and businesses have been holding back on purchasing the latest 5G models until they could reap the benefits of having a much more established 5G network in place.

New Law To Advance Fast Broadband Roll-Out Announced

Amendments to the UK’s Electronic Communications Code will give broadband operators compulsory rights to install their apparatus on another person’s property, thereby getting around the problem of landlords not responding to requests for access to blocks of flats and apartments.

The Challenge

The challenge that has prompted the government to seek changes to the current legislation has been a claim by broadband operators that 40% of their requests for access to blocks of flats and apartments have routinely received no response. This has been blamed for slowing down the UK government’s plans to deliver the target of national full-fibre coverage by 2025 and develop the kind of digital infrastructure that could boost growth and boost productivity.

The Law

Prior to 2017, the UK law that applied to relations between landlords and telecoms operators in respect installing and maintaining electronic communications apparatus on land and buildings was the Telecommunications Code in the Telecommunications Act 1984 (amended by the Communications Act 2003). This Telecommunications Code has now been replaced by the new Electronic Communications Code (as part of the Digital Economy Act 2017). The new code means that a broadband operator can now apply for compulsory rights to install apparatus on another person’s property.

It is thought this change to the law will mean that an extra 3,000 (estimated) residential buildings (flats and apartments) per year can now have modern broadband installed.

Rural Challenge

The government still faces a considerable challenge in getting more rural areas connected in order to meet its broadband and mobile network roll-out targets, and there is currently a digital divide between urban and rural areas of the UK.  The government has recently announced, however, that £5bn new funding will be made available to bring gigabit-capable broadband to harder-to-reach, rural parts of the UK as well as a change in planning rules to help the roll-out of 5G.

What Does This Mean For Your Business?

Now that operators don’t have to wait for responses from landlords, this could make the chance of the government meeting its broadband targets a little more likely and could help boost the economy.

Broadband is an essential service for business and despite this positive change in the law, many UK business owners still know that broadband services in the UK can sometimes be patchy and often expensive, while ‘Which?’ research shows that the UK ranks only 31st in the world for average broadband speeds. Those businesses in rural areas are also finding themselves facing the challenge of a growing digital divide between rural and urban that is adversely affecting their competitiveness.

Even with this change in the law, being able to meet the target of national full-fibre coverage by 2025 is a big ask and it is estimated that the UK may only have 7% full-fibre coverage by 2020.

Tech Tip – Telegram

Telegram describes itself as the fastest messaging app on the market, and uses a unique, distributed network of data centres around the globe so that’s it’s not only a simple, fast, secure messaging service that’s synced across all your devices, but also has added features and an ease of operation that many prefer to WhatsApp.

Everything on Telegram (chats, groups, media, etc.) is encrypted using a combination of 256-bit symmetric AES encryption.  Also, the app has a clean interface, there are no adverts, and Telegram offers powerful photo and video editing tools.

Telegram is available on the Google Play Store and Apple’s App Store.

AI Destined For McDonald’s Drive-Throughs

The acquisition of AI voice recognition start-up Apprente by the McDonalds franchise gives the restaurant chain its own Silicon Valley technology division and promises an automated ordering system for drive-throughs, self-order interfaces and the mobile app.

Apprente

Apprente is a Silicon Valley-based start-up (founded 2017, Mountain View, California) that specialises in making customer service chatbots.  Its acquisition by McDonald’s gives the restaurant chain its own AI-powered voice-based conversational system that can handle human-level interactions, thereby helping improve the speed and accuracy of orders.

It is thought that the Apprente system will not completely replace the traditional front of house staff, but may be used in mobile ordering or kiosks i.e. added to drive-through kiosks or sited nearby (and added to the mobile app) so that that food can be ordered by the customer’s voice, and transcripts of the order can be given to staff to ensure that the order is correct.  The transcript may also be presented or read to the customer when they pick the order up minutes later.  The technology may, therefore, provide time-saving, accuracy, and convenience benefits to both customers and staff.

Why?

There are a few key reasons why McDonald’s has gone down the tech route with its order taking.  These include:

  1. Competition from home delivery companies.
  2. 70 per cent of the company’s orders come through its drive-throughs but some reports show that McDonald’s may be relatively slow in getting its drive-through food orders out.  For example, a recent report (Oches’ 2019) shows that while the average wait in a Burger King drive-through is over 193 seconds, the waiting time in McDonald’s is considerably longer at 273 seconds.  McDonald’s ranked the tenth and slowest fast-food company in that report, but the addition of the voice-based conversational system could help speed things up.
  3. To give McDonald’s a technology development centre, the McD Tech Labs in Silicon Valley so that the restaurant chain can keep adding value through new technology and stay ahead in the market.

Other Acquisitions

McDonald’s has also recently acquired customer services personalisation company and AI start-up ‘Dynamic Yield’. With this deal, worth more than £240 million, McDonald’s can use the decision-logic technology to create drive-through menus tailored to its customers based on the time of the day, trends, previous choices and other factors.

What Does This Mean For Your Business?

For customers, the deployment of the new voice-recognition technology in addition to the Dynamic Yield (already deployed in 8,000 US drive-throughs) should make ordering food a faster and better experience.

For McDonald’s, the addition of the new technology and of a tech base in Silicon Valley to develop more of the same should help it to compete in a market that’s getting busier with companies that are using technology to reach customers and satisfy the same need for fast gratification.  The value-adding technology (combined with the fact that McDonald’s have a restaurant in most towns with a standardised and trusted product and brand) means that McDonald’s is taking steps to ensure that it stays ahead in a future where technology is an important competitive advantage in fast food delivery.   The new technology may also help McDonald’s address its current need to get orders ready more quickly and accurately while adding a novelty factor, talking point, and perceived advantage among customers.