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How Wily Teens Outwit Bathroom Vape Detectors

Last spring, students at Hinsdale Central High School discovered six vaping detectors in bathrooms and locker rooms around campus. About 20 miles southwest of Chicago, Hinsdale Central has been battling on-campus vaping for years. Administrators tried making students take online courses if they were caught with ecigarettes; they talked to law enforcement; the Village of…

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How Wily Teens Outwit Bathroom Vape Detectors

Last spring, students at Hinsdale Central High School discovered six vaping detectors in bathrooms and locker rooms around campus. About 20 miles southwest of Chicago, Hinsdale Central has been battling on-campus vaping for years. Administrators tried making students take online courses if they were caught with ecigarettes; they talked to law enforcement; the Village of Hinsdale even passed an ordinance that would make it easier for officers to ticket minors caught with the devices. To no avail. And the detectors? Students simply ripped them off the walls.

Ecigarettes, which are easy to conceal and, until recently, came in a dazzling array of sweet, fruity, and dessert flavors, are hugely popular among teenagers. A recent study found that 28 percent of high schoolers and 11 percent of middle schoolers frequently vape. So schools across the country are spending thousands of dollars to outfit their campuses with vaping detectors, only to find that the devices can’t stand up to wily teens and that policing student behavior isn’t the same as permanently changing it.

Like smoke detectors, vape detectors are relatively unintrusive. They don’t even record video or audio—they just register the chemical signature of vaping aerosol, then send an email or text alert to school officials.

Some schools say they’re a useful deterrent. A district in Sparta, New Jersey, started off with two detectors and is planning to install more. Freeman School District in Washington installed detectors a few weeks ago. “They’ve been very effective, and we’re glad we have them,” says superintendent Randy Russell, who noted that the detectors already helped catch one young vaper in the act.

But at Hinsdale, even before the teens subjected them to blunt force trauma, the devices hadn’t lived up to expectations. “By the time we get there the kids are gone,” says Kimm Dever, an administrator at Hinsdale Central. Dever says the devices also went off randomly, and administrators couldn’t tell which kids were vaping and which just happened to be in the bathroom when the devices alerted.

Revere Schools in Bath, Ohio, reported similar problems. Revere spent around $15,000 to install 16 detectors in its middle and high schools at the beginning of the school year. Parents were thrilled, but administrators rarely made it to the bathroom in time to catch the vapers mid-puff. “It was like chasing ghosts,” says Jennifer Reece, a spokesperson for the school district. In theory, school officials could consult footage from hallway cameras to triangulate which students were in the bathroom when the detectors went off. “That also takes up time, and we don’t always have that type of time” Reece says.

Revere bought detectors with grant money from the state Attorney General’s Office. Now, Reece often gets questions from other school districts about the devices. “If they don’t have grant money I don’t know if it’s worth [the cost],” she says.

If vaping has become the cool thing to do among students, then buying vape detectors is the big trend for school districts. Derek Peterson, the CEO of Soter Technologies, which makes the Flysense detector that Revere installed, says the company is fielding about 700 orders a month. “We have more schools coming to us than we know what to do with,” he says. IPVideo, which makes a number of cameras and other gadgets for schools, sells a Halo detector that also claims to distinguish between THC and nicotine vapor. The detectors can integrate with school camera systems so it’s easier for administrators to figure out which students are in the bathroom, and both companies’ detectors cost roughly $1,000 a piece. Flysense charges an additional annual fee.

The sensors are chemical detectors that go off when the levels of certain chemicals in the room change. Most schools say they do sense the vapor and that they’ve caught students because of them. But kids are clever. Some exhale into their backpacks or sleeves, where the aerosol dissipates before wafting up to the detector. Other kids resort to AP physics–level subterfuge. They exhale into the toilet and flush, creating a vacuum that sucks the aerosol into the pipes. “There’s nothing we can do about that,” says Peterson. “There’s no sensing that could ever change the laws of physics.”

The problem is that detectors alone can’t change students’ behavior. It’s important for schools to analyze their goals, says Bonnie Halpern-Felsher, a developmental psychologist at Stanford who studies teen vaping. Vape detectors might help catch offending kids so they can be punished, she says, but “if the goal is to prevent and stop, vape detectors are not the way to go.”

Peterson agrees and is already getting in on the education angle, offering a #NoVaping package that includes brochures, posters, and suggestions for class presentations.

Between 2017 and 2019, the California Department of Justice distributed more than $12 million to California school districts trying to deter vaping through a number of measures including installing detectors, hiring school resource officers, and running educational programs.

One of those districts was Las Virgenes Unified, which serves around 11,500 students northwest of Los Angeles. In October 2018, Las Virgenes spent half of its grant, some $50,000, to install Flysense detectors at its two high schools and three middle schools. “The technology is good. They work,” says superintendent Dan Stepenosky. But he combines the detectors with other measures. When students are caught vaping, they’re sent to a 90-minute meeting with their parents and an addiction counselor. The school dispatched administrators to nearby gas stations, grocery stores, and convenience stores to remind people not to sell ecigarettes to kids under 21. The school even partners with law enforcement to run sting operations on businesses in the community that sell ecigarettes to minors. So far they’ve conducted over 250 operations complete with undercover officers and marked bills.

But the most important element hasn’t been the sting operations, the crackdowns on local retailers, or the detectors. “The most impactful has been the education piece,” says Stepenosky. The district holds seminars for parents and teachers, and it hired extra deans to focus on student wellness and included information about ecigarettes in school curricula.

These strategies are comprehensive, and they demand a lot of resources. One school in South Dakota raised money from the local community to buy its sensors. Other school districts are suing Juul, blaming the company’s marketing for creating a new generation of nicotine-addicted kids. Those districts hope to get payouts that will alleviate the huge financial burden of running addiction counseling and education programs. Stepenosky received over a million dollars from the California Department of Justice, and he’s already applying for more funding for next year.


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These ten enterprise M&A deals totaled over $40B in 2019

It would be hard to top the 2018 enterprise M&A total of a whopping $87 billion, and predictably this year didn’t come close. In fact, the top 10 enterprise M&A deals in 2019 were less than half last year’s, totaling $40.6 billion. This year’s biggest purchase was Salesforce buying Tableau for $15.7 billion, which would…

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These ten enterprise M&A deals totaled over $40B in 2019

It would be hard to top the 2018 enterprise M&A total of a whopping $87 billion, and predictably this year didn’t come close. In fact, the top 10 enterprise M&A deals in 2019 were less than half last year’s, totaling $40.6 billion.

This year’s biggest purchase was Salesforce buying Tableau for $15.7 billion, which would have been good for third place last year behind IBM’s mega deal plucking Red Hat for $34 billion and Broadcom grabbing CA Technologies for $18.8 billion.

Contributing to this year’s quieter activity was the fact that several typically acquisitive companies — Adobe, Oracle and IBM — stayed mostly on the sidelines after big investments last year. It’s not unusual for companies to take a go-slow approach after a big expenditure year. Adobe and Oracle bought just two companies each with neither revealing the prices. IBM didn’t buy any.

Microsoft didn’t show up on this year’s list either, but still managed to pick up eight new companies. It was just that none was large enough to make the list (or even for them to publicly reveal the prices). When a publicly traded company doesn’t reveal the price, it usually means that it didn’t reach the threshold of being material to the company’s results.

As always, just because you buy it doesn’t mean it’s always going to integrate smoothly or well, and we won’t know about the success or failure of these transactions for some years to come. For now, we can only look at the deals themselves.

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Jumia, DHL, and Alibaba will face off in African ecommerce 2.0

The business of selling consumer goods and services online is a relatively young endeavor across Africa, but ecommerce is set to boom. Over the last eight years, the sector has seen its first phase of big VC fundings, startup duels and attrition. To date, scaling e-commerce in Africa has straddled the line of challenge and…

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Jumia, DHL, and Alibaba will face off in African ecommerce 2.0

The business of selling consumer goods and services online is a relatively young endeavor across Africa, but ecommerce is set to boom.

Over the last eight years, the sector has seen its first phase of big VC fundings, startup duels and attrition.

To date, scaling e-commerce in Africa has straddled the line of challenge and opportunity, perhaps more than any other market in the world. Across major African economies, many of the requisites for online retail — internet access, digital payment adoption, and 3PL delivery options — have been severely lacking.

Still, startups jumped into this market for the chance to digitize a share of Africa’s fast growing consumer spending, expected to top $2 billion by 2025.

African e-commerce 2.0 will include some old and new players, play out across more countries, place more priority on internet services, and see the entry of China.

But before highlighting several things to look out for in the future of digital-retail on the continent, a look back is beneficial.

Jumia vs. Konga

The early years for development of African online shopping largely played out in Nigeria (and to some extent South Africa). Anyone who visited Nigeria from 2012 to 2016 likely saw evidence of one of the continent’s early e-commerce showdowns. Nigeria had its own Coke vs. Pepsi-like duel — a race between ventures Konga and Jumia to out-advertise and out-discount each other in a quest to scale online shopping in Africa’s largest economy and most populous nation.

Traveling in Lagos traffic, large billboards for each startup faced off across the skyline, as their delivery motorcycles buzzed between stopped cars.

Covering each company early on, it appeared a battle of VC attrition. The challenge: who could continue to raise enough capital to absorb the losses of simultaneously capturing and creating an e-commerce market in notoriously difficult conditions.

In addition to the aforementioned challenges, Nigeria also had (and continues to have) shoddy electricity.

Both Konga — founded by Nigerian Sim Shagaya — and Jumia — originally founded by two Nigerians and two Frenchman — were forced to burn capital building fulfillment operations most e-commerce startups source to third parties.

That included their own delivery and payment services (KongaPay and JumiaPay). In addition to sales of goods from mobile-phones to diapers, both startups also began experimenting with verticals for internet based services, such as food-delivery and classifieds.

While Jumia and Konga were competing in Nigeria, there was another VC driven race for e-commerce playing out in South Africa — the continent’s second largest and most advanced economy.

E-tailers Takealot and Kalahari had been jockeying for market share since 2011 after raising capital in the hundreds of millions of dollars from investors Naspers and U.S. fund Tiger Global Management.

So how did things turn out in West and Southern Africa? In 2014, the lead investor of a flailing Kalahari — Naspers — facilitated a merger with Takealot (that was more of an acquisition). They nixed the Kalahari brand in 2016 and bought out Takelot’s largest investor, Tiger Global, in 2018. Takealot is now South Africa’s leading e-commerce site by market share, but only operates in one country.

In Nigeria, by 2016 Jumia had outpaced its rival Konga in Alexa ratings (6 vs 14), while out-raising Konga (with backing of Goldman Sachs) to become Africa’s first VC backed, startup unicorn. By early 2018, Konga was purchased in a distressed acquisition and faded away as a competitor to Jumia.

Jumia went on to expand online goods and services verticals into 14 Africa countries (though it recently exited a few) and in April 2019 raised over $200 million in an NYSE IPO — the first on a major exchange for a VC-backed startup operating in Africa.

Jumia’s had bumpy road since going public — losing significant share-value after a short-sell attack earlier in 2019 — but the continent’s leading e-commerce company still has heap of capital and generates $100 million in revenues (even with losses).

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Airbnb’s New Year’s Eve guest volume shows its falling growth rate

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between. It’s finally 2020, the year that should bring us a direct listing from home-sharing giant Airbnb, a technology company valued at tens of billions of dollars. The company’s flotation will be a key event in…

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Airbnb’s New Year’s Eve guest volume shows its falling growth rate

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

It’s finally 2020, the year that should bring us a direct listing from home-sharing giant Airbnb, a technology company valued at tens of billions of dollars. The company’s flotation will be a key event in this coming year’s technology exit market. Expect the NYSE and Nasdaq to compete for the listing, bankers to queue to take part, and endless media coverage.

Given that that’s ahead, we’re going to take periodic looks at Airbnb as we tick closer to its eventual public market debut. And that means that this morning we’re looking back through time to see how fast the company has grown by using a quirky data point.

Airbnb releases a regular tally of its expected “guest stays” for New Year’s Eve each year, including 2019. We can therefore look back in time, tracking how quickly (or not) Airbnb’s New Year Eve guest tally has risen. This exercise will provide a loose, but fun proxy for the company’s growth as a whole.

The numbers

Before we look into the figures themselves, keep in mind that we are looking at a guest figure which is at best a proxy for revenue. We don’t know the revenue mix of the guest stays, for example, meaning that Airbnb could have seen a 10% drop in per-guest revenue this New Year’s Eve — even with more guest stays — and we’d have no idea.

So, the cliche about grains of salt and taking, please.

But as more guests tends to mean more rentals which points towards more revenue, the New Year’s Eve figures are useful as we work to understand how quickly Airbnb is growing now compared to how fast it grew in the past. The faster the company is expanding today, the more it’s worth. And given recent news that the company has ditched profitability in favor of boosting its sales and marketing spend (leading to sharp, regular deficits in its quarterly results), how fast Airbnb can grow through higher spend is a key question for the highly-backed, San Francisco-based private company.

Here’s the tally of guest stays in Airbnb’s during New Years Eve (data via CNBC, Jon Erlichman, Airbnb), and their resulting year-over-year growth rates:

  • 2009: 1,400
  • 2010: 6,000 (+329%)
  • 2011: 3,1000 (+417%)
  • 2012: 108,000 (248%)
  • 2013: 250,000 (+131%)
  • 2014: 540,000 (+116%)
  • 2015: 1,100,000 (+104%)
  • 2016: 2,000,000 (+82%)
  • 2017: 3,000,000 (+50%)
  • 2018: 3,700,000 (+23%)
  • 2019: 4,500,000 (+22%)

In chart form, that looks like this:

Let’s talk about a few things that stand out. First is that the company’s growth rate managed to stay over 100% for as long as it did. In case you’re a SaaS fan, what Airbnb pulled off in its early years (again, using this fun proxy for revenue growth) was far better than a triple-triple-double-double-double.

Next, the company’s growth rate in percentage terms has slowed dramatically, including in 2019. At the same time the firm managed to re-accelerate its gross guest growth in 2019. In numerical terms, Airbnb added 1,000,000 New Year’s Eve guest stays in 2017, 700,000 in 2018, and 800,000 in 2019. So 2019’s gross adds was not a record, but it was a better result than its year-ago tally.

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