TECH

Zoom Races to Catch Up With Itself

In the coronavirus pandemic era, videoconferencing company Zoom has quickly zum from successful enterprise firm →  essential utility → new face of Big Tech's privacy and security challenges. 

To break that journey down...

Part 1: Founded in 2011, Zoom met rising demand for workplace video calls that 1) didn't freeze every 10 minutes and 2) launched quickly. It did that well—when Zoom went public last April, shares popped 72% in an otherwise meh year for IPOs. 

Part 2: As social distancing became the norm over the past month, Zoom's usage has exploded about 20x since December. And it's not just the numbers—the types of users have changed as well; schools, religious institutions, and friends are using it to connect.

Part 3: With all that traffic, Zoom's flaws have been exposed. A report from The Intercept showed the service did not have end-to-end encryption, despite marketing itself to that effect. Others found security holes that could allow hackers to plant malware. And then there are the trolls—people who "Zoombomb" calls by sneaking in and displaying inappropriate content like pornography. 

• The Senate's sergeant at arms reportedly warned the chamber's members not to use the service. Many private sector firms, like Google and SpaceX, have banned employees from using it.
• Zoom has patched many of those security issues and apologized for the encryption debacle. Last week, it instituted a 90-day pause on other initiatives to devote engineering resources exclusively to privacy and security.

~Zoom~ out: Achilles needed his heel to become Greece's greatest warrior and Zoom needed a super-simple user experience to become popular. It's this ease of use—like the ability to join calls with one click—that made Zoom vulnerable to attacks. 

Plus, it wasn't prepared for the influx of non-enterprise users. Zoom typically leaves some security practices up to customers, since in normal circumstances they're businesses. But it's less reasonable to ask teachers or your aunt who's three Chardonnays deep to configure their own security settings.

JOBS

The Cursed Chart Returns

Last week, 6.6 million U.S. workers filed for unemployment, the Labor Department reported yesterday. Feeling déjà vu? The agency also also reported 6.6 million first-time claims the last full week of March, a staggering number it's since revised up to 6.9 million. 

We had to break out the calculator to tackle these numbers. In a three-week span, nearly 17 million workers (about 10% of the U.S. workforce) filed for unemployment. Pennsylvania and California accounted for ~20% of claims. 

• To handle the influx, New York has 1,000 people processing unemployment applications. It's also fronting the money for $600 payments individuals can claim under the federal relief package on top of regular unemployment checks.

Experts don't know how far up the mountain we are, but they're pretty sure the summit is a ways off. Moody's projects 45 million jobs are at risk because of this pandemic.  

Big picture: A couple more weeks of numbers like this and the U.S. economy will wipe out the 24.8 million jobs gained from February 2010 to February 2020. 

ECONOMY

He Is Not Throwing Away His Shot

If Jerome Powell isn't the subject of a Lin-Manuel Miranda musical when Broadway returns, we give up. The Fed chair unleashed $2.3 trillion in additional stimulus juice to try to save the U.S. economy from its worst possible fate. 

We keep saying these Fed measures are bigger than the last, but...this one may actually be. Yesterday's infusion targets "Main Street" with loans to households, small and mid-sized businesses, and cash-strapped state and local governments. 

• The Fed raised some eyebrows by saying it'll directly buy municipal debt and fund the purchases of some high-yield bonds—an unusual move.

But these are "very unusual circumstances," Powell said on a webcast carried by the Brookings Institution. "The Fed's role is to provide as much relief and stability as we can" during this time. Powell also acknowledged that the Fed only has "lending powers, not spending powers." It needs to get paid back.  

Bottom line: The Fed is using every tool imaginable—slashing interest rates, ensuring liquidity in credit markets, and now directly helping small businesses—to, in Powell's words, make people "whole." 

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GROCERY

Walmart = Mr. Freeze, Amazon = Dude in Cargo Shorts

We promised we wouldn't use this GIF in the newsletter unless it was absolutely necessary.

That moment has arrived. A new report from App Annie shows that Walmart Grocery came from wayyyy behind to snag the No. 1 downloaded shopping app in the U.S. last week, topping Amazon by 20%. 

• Walmart Grocery's average daily downloads were up 460% over January, as of April 5. 

App Annie

An interesting wrinkle: Pre COVID-19, Walmart had planned to fold Grocery into its flagship mobile app and website. The company told TechCrunch it hasn't changed its thinking despite the current popularity of the app. 

QUIZ

Quizi

A reminder that today is Friday, and pet adoption is surging throughout the U.S. It's the Brew’s Weekly News Quiz.

1. Fill in the blank: Massachusetts is launching the U.S.' first major  ____ ____ program to slow the coronavirus’s spread. 

• How it works: When a patient tests positive, you make a list of everyone they came in close contact with. Then, you find those people and make sure they self-isolate so they can't infect others.

2. The Federal Reserve temporarily lifted its cap on Wells Fargo’s growth so it could continue lending through the $349 billion PPP program. What does PPP stand for?

3. Facebook quietly launched a messaging app for couples to privately send each other messages, music, photos, and moods. What is it called?

1. Hang
2. Meetcute
3. Tuned
4. SnapChateau

4. Name the company: Last April, it became the U.S.’ first drone operator to be FAA-certified as an air carrier, and in October it rolled out a test delivery program in  Christiansburg, VA. Now, it's adding more vendors and new items amid a surge in demand. 

5. What did the CPBL's Rakuten Monkeys announce they’ll be putting in empty stadium seats this Saturday for opening day?

1. Robot mannequins
2. Hecklers, to prepare the team for away games
3. Free-standing screens displaying fan-submitted photos
4. The players’ cats and dogs

Or, you can keep scrolling for the answers. 

HOLIDAYS

Between Passover, Easter, and Ramadan (which begins later this month), we hope you and your loved ones are finding ways to connect and celebrate even in these unconventional times. 

Above, Australian priest Tony Sarkis made sure his congregation could join him for Easter services.

WHAT ELSE IS BREWING

• U.K. Prime Minister Boris Johnson was released from intensive care yesterday after his COVID-19 symptoms improved. 
• U.S. air travelers have fallen back to 1954 levels. The TSA screened just under 95,000 travelers on Wednesday. 
• The Senate failed to agree to the terms for an additional $250 billion aid package for small businesses. 
• 24 hours in the fight to save New York.
• Smithfield will temporarily shut its pork processing plant in South Dakota after more than 80 employees contracted COVID-19.

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BREW'S BETS

Here are some reader favorites from The Essentials, our new pop-up newsletter helping you stay entertained, active, and happy during quarantine:

• How to throw a PowerPoint party
• A list of free, online board games
• This whipped coffee recipe from TikTok

Sign up here to get The Essentials sent to your inbox tonight.

FROM THE CREW

Elbow Bump of the Day

Today, we’re elbow bumping the mental health counselors and volunteers on the other side of crisis and suicide call/text lines. Thank you for providing an outlet for COVID-19 anxieties around the world, even as you deal with the crisis yourselves. 

To everyone at the National Suicide Prevention Lifeline, Crisis Text Line, and many more: We at Morning Brew are grateful for the work you do always, but especially now.

FRIDAY HEADLINES

No Saturday newsletter means our headline quiz gets bumped to Friday. Can you spot the news story we made up? 

1. “Jack Dorsey gets blasted over his $1 billion donation to COVID-19 relief: 'That's only 28% of his total wealth'"  
2. “Japanese cook draws every meal he eats, now has 32 years' worth”
3. “Crowd of 30 middle-aged Pink Floyd fans defy police in New Jersey to hold a 'corona street party' where they played the band's greatest hits”
4. “Wimbledon paid pandemic insurance for almost 20 years. Now it’s getting $141 million”

ANSWERS

Friday Headlines: Jack Dorsey isn't getting much criticism over his donation, as far as we know. 

Quiz: 1. Contact tracing 2. Paycheck Protection Program 3. Tuned 4. Wing 5. Robot mannequins